Fitch rates Riyad Sukuk Limited



Fitch Ratings has assigned a long-term rating of ‘BBB-’ to Riyad Bank’s (Riyad; BBB+/Stable/bbb+) USD1,500 million subordinated Tier 2 sukuk issued under its trust certificate issuance programme, housed under Riyad Sukuk Limited (RSL). The US dollar-denominated sukuk mature on 25 February 2030 (ISIN XS2120069047), with a first call date in 2025, and constitute direct, unsecured, and subordinated obligations of Riyad and rank pari passu with all other tier 2 certificates issued under the programme. The certificate holders’ right to receive payment of the principal amount of the Tier 2 certificates will, and the periodic distribution amounts in respect of Tier 2 certificates may, be written-down (in whole or in part) upon the occurrence of a non-viability event. RSL, the issuer and trustee, is a special purpose vehicle (SPV), incorporated in the Cayman Islands as a trust for charitable purposes with shares being held by Maples FS Limited as share trustee. RSL was established solely to issue certificates (sukuk) under the programme and entering into the transactions contemplated by the transaction documents. A full list of ratings is detailed below. Key Rating Drivers The tier 2 certificates are rated two notches below Riyad’s ‘BBB+’ Long-Term IDR (LT IDR).—Agencies