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Saudi Arabia’s Riyad Bank, rated A1 by Moody’s, A by S&P, and A- by Fitch (all with a stable outlook), tightened the spread on its $1 billion 10-year non-call 5-year Tier 2 sustainable notes to 210 basis points over US Treasuries from initial price thoughts in the T+235bps area.
The benchmark sized issuance carries a fixed resettable coupon rate of 5.805%, with a similar yield, and a re-offer price at par.
The final orderbook for the Eurobond was in excess of $2.6 billion, excluding joint lead managers’ interest.
The issuance has an expected rating of BBB- by S&P, and BBB by Fitch, which will come under Riyad Bank’s existing $5 billion medium-term note programme.
The lender mandated First Abu Dhabi Bank PJSC, Banco Bilbao Vizcaya Argentaria, S.A. (BBVA), DBS Bank Ltd, Emirates NBD Capital, HSBC Bank plc, Merrill Lynch Kingdom of Saudi Arabia, Mizuho International plc, Riyad Capital, SMBC Bank International plc and Standard Chartered Bank as joint lead managers and book runners.
The notes will be listed on the London Stock Exchange’s International Securities Market.
Riyad Bank is the latest Saudi financial institution to tap debt markets in recent days. On Wednesday, the kingdom’s Islamic lender Al Rajhi Bank as opened books for its benchmark-sized US dollar Additional Tier 1 social sukuk, with initial price thoughts (IPTs) at around 6.625%.
The Saudi-listed Bank Albilad also mandated banks to issue an AT1 sukuk on Wednesday to boost its capital base and meet long-term strategic goals.
(Writing by Bindu Rai, editing by Brinda Darasha)
