Arab News, Sat, Jun 01, 2024 | Dhu al-Qadah 24, 1445
Saudi Arabia issues new sukuk worth $17.09 billion
Saudi Arabia:
Saudi Arabia has issued new sukuk worth SR64.1 billion ($17.09 billion) after it
completed an early purchase of more than SR63.1 billion of outstanding debt.
In a statement, Saudi Arabia’s National Debt
Management Center said that the new Shariah-compliant debt product has been
divided into three tranches.
The first tranche valued at SR16 billion is set to
mature in 2031, while the second one amounting to SR29.3 billion will be due in
2034.
The third tranche is worth SR18.8 billion and is
set to mature in 2039.
“This initiative is a continuation of NDMC’s
efforts to strengthen the domestic market,” said NDMC in the statement.
It added: “Further, this initiative enables NDMC
to exercise its role in managing the government debt obligations and future
maturities. This will also align NDMC’s effort with other initiatives to enhance
the public fiscal in the medium & long term.”
On May 29, NDMC announced the completion of a $5
billion international trust certificate issuance, under the Kingdom’s Global
Trust Certificate Issuance Program.
In a statement, the official body said that the
total order book of applications reached around $20 billion, which equals an
oversubscription of four times.
Earlier this month, NDMC revealed that the Kingdom
completed its riyal-denominated sukuk issuance for May at SR3.23 billion.
The Shariah-compliant debt product for May was
divided into two tranches.
The first tranche valued at SR71 million is set to
mature in 2029, while the second one amounting to SR3.16 billion is due in
2036.
In April, an analysis released by S&P Global
projected that sukuk issuance globally is expected to hover between $160 billion
and $170 billion in 2024.
In the same month, another report by Fitch Ratings
also echoed similar views and said that global sukuk issuance is expected to
continue growing in the coming months of this year.
Fitch noted that economic diversification efforts
and the rapid development of the debt capital market in the Gulf Cooperation
Council region would propel the growth of the sukuk market in the coming months.