Arab News, Tue, May 28, 2024 | Dhu al-Qadah 20, 1445
Saudi Exchange approves listing of $12.08bn in govt debt instruments
Saudi Arabia:
Saudi Arabia’s stock exchange has approved the listing of SR45.28 billion
($12.08 billion) worth of government debt instruments submitted by the Ministry
of Finance.
A Tadawul statement revealed that the exchange
approved increasing the issuance of a government debt instrument, dated April 7,
from SR15.98 billion to SR17.63 billion.
Similarly, the bourse also approved the increase
of another instrument, dated April 1, from SR29.29 billion to SR38.53 billion.
According to a Tadawul statement, the listing
commenced on May 27.
On May 23, the exchange approved the Ministry of
Finance’s request to list Saudi government debt instruments with a total value
of SR18.84 billion. Trading in these debt instruments will begin on May 27.
Earlier this month, Saudi Arabia’s National Debt
Management Center revealed that the Kingdom completed its riyal-denominated
sukuk issuance for May at SR3.23 billion.
In a press statement, the NDMC disclosed that the
Shariah-compliant debt product for the month was divided into two tranches: the
first, valued at SR71 million, set to mature in 2029, and the second, valued at
SR3.16 billion, due in 2026.
In April, Saudi Arabia issued sukuk amounting to
SR7.39 billion, compared to SR4.44 billion in March and SR7.87 billion in
February.
In March, the NDMC also concluded its second
government sukuk savings round, with a total volume of requests reaching SR959
million, allocated to 37,000 applicants.
In March, the center announced that this financial
product, also known as Sah, offers a return of 5.64 percent and has a maturity
date of March 2025.
In April, a report released by credit-rating
agency S&P Global projected that global sukuk issuance will hover between $160
billion and $170 billion in 2024.
The US-based firm also noted that the issuance of
this debt product began on a strong footing in 2024, with Saudi Arabia becoming
a key contributor to the performance.
Another study released by Fitch Ratings in April
echoed similar views, noting that global sukuk issuance is expected to continue
its robust growth in the coming months, propelled by economic diversification
efforts and the development of the debt market.