Saudi Arabia’s Bank AlBilad will issue a domestic Saudi riyal-denominated Tier 2 sukuk for up to 3 billion riyals ($800 million) by way of private placement in the kingdom.

The potential offer may also include an option for the holders of the 2 billion riyals sukuk, due in 2026, to exchange their investment for the Tier 2 sukuk, subject to the terms and conditions, the lender said in a statement to the Tadawul exchange on Thursday.

Bank AlBilad has mandated Albilad Capital as the sole arranger and dealer for the potential offer.

Last month, the lender reported 8 percent increased net profit to 1.35 billion riyals for the fiscal year 2020 on higher net income from investment and financing activities.