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.