Riyad Bank sells $1bn Islamic bond

November 10, 2013 12:00 am

Saudi Arabia’s third-largest lender by market value, Riyad Bank has said it has sold an Islamic bond worth SR4bn ($1.07bn) through a private placement, Gulf Daily News has reported. The sukuk will be used to diversify its funding sources, extend the maturity of its funding and support the financing of Shari’ah-compliant business, the bank said. Riyad Bank is the latest Saudi lender to issue a riyal-denominated sukuk, tapping into a highly liquid local investor pool to secure cheaper, longer-term finance that would be hard to obtain through the loan market.