Aldrees buys USD-denominated sukuk worth SAR 223.9M from Riyad Bank

Aldrees Petroleum and Transport Services Co. purchased USD-denominated additional Tier 1 sustainable sukuk worth SAR 223.87 million ($59.7 million) from Riyad Bank on Oct. 1, according to a Tadawul statement.

The self-financed purchase will have an expected return of 5.5% annually for a period of five and a half years, the company said, noting that the sukuk is not tradable.

It added that the dividend will be distributed on a semi-annual basis for the diversification of investment opportunities and safe investment in sukuk.

According to data available with Argaam, Riyad Bank completed its $750 million worth of USD-denominated additional Tier 1 sustainable sukuk under its international additional Tier 1 sukuk program.