Riyad Sukuk Limited Announces Redemption of Trust Certificates

Riyad Sukuk Limited's Upcoming Redemption Announcement

Riyad Sukuk Limited, a company incorporated in the Cayman Islands, is set to redeem its $1.5 billion Fixed Rate Reset Tier 2 Trust Certificates that are due in 2030. This significant financial move signals the company’s commitment to maintaining a healthy financial standing, with the redemption to occur on a scheduled date.

Details of the Redemption Process

The certificates involved in this redemption were initially issued on February 25, 2020, as part of Riyad Sukuk's expansive $3 billion Trust Certificate Issuance Programme. As per the announcement, these certificates will be redeemed at 100 percent of their outstanding face value, a testament to Riyad Sukuk's strong financial management.

Understanding the Timeline

While the redemption date is slated for February 25, 2025, it is crucial for investors and stakeholders to note that this process includes all unpaid Periodic Distribution Amounts accrued since the last Reset Certificate Periodic Distribution Date, ensuring that all financial obligations are met before the Optional Dissolution Date.

Implications for Trust and Certificate Holders

Upon completion of the redemption, the trust associated with these certificates will terminate. Consequently, the trust certificates will no longer represent ownership interests in the Trust Assets, and no further payments will be forthcoming. Consequently, these certificates will be formally canceled and removed from the London Stock Exchange's International Securities Market.

Regulatory Considerations

This redemption action adheres to Condition 11.4, which addresses the Dissolution at the Option of the Trustee. The Trustee has issued an irrevocable notice to the existing certificate holders, confirming the intention to redeem the outstanding certificates as mentioned earlier, which emphasizes a structured and legally compliant approach.

Important Information for Investors

It's imperative to note that this redemption will not be available to U.S. investors and is not registered under U.S. Securities Act regulations. Therefore, there will be no public offerings for these securities within the United States, which is crucial for potential investors to understand as they navigate the complexities of international finance.

Conclusion

The news regarding the redemption of the $1.5 billion trust certificates marks a pivotal move for Riyad Sukuk Limited as it continues to navigate through market dynamics and investor expectations. By adhering to regulatory frameworks and ensuring transparency in its operations, the company is positioning itself strongly for future financial endeavors. Investors and stakeholders are encouraged to stay informed and engaged as more developments unfold.

Frequently Asked Questions

What is the total amount being redeemed by Riyad Sukuk Limited?

Riyad Sukuk Limited is redeeming a total of $1.5 billion in trust certificates.

When is the scheduled redemption date for these certificates?

The redemption date is set for February 25, 2025.

What will happen to the trust after the redemption?

After the redemption, the trust will terminate, and the certificates will cease to represent any ownership interests in the Trust Assets.

Are U.S. investors allowed to participate in this redemption?

No, the redemption is not available to U.S. investors and is not registered under the U.S. Securities Act.

Who issued the notice for the redemption of these certificates?

The Trustee issued the irrevocable notice to the certificate holders confirming the redemption.

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