Arab News, Wed, Jan 22, 2025 | Rajab 22, 1446
Saudi Arabia raises $990m in sukuk issuances for January
Saudi Arabia:
Saudi Arabia’s National Debt Management
Center has completed its riyal-denominated sukuk issuance for January, raising
SR3.72 billion ($990 million).
In December 2024, the Kingdom raised SR11.59
billion through sukuk, while the amounts in November and October were SR3.41
billion and SR7.83 billion, respectively. Sukuk are Shariah-compliant debt
instruments that provide investors with partial ownership of the issuer’s assets
until maturity.
According to the NDMC, the January sukuk issuance
was divided into four tranches. The first tranche, valued at SR1.25 billion, is
set to mature in 2029. The second tranche, sized at SR1.40 billion, will mature
in 2032, while the third tranche, worth SR1.03 billion, will mature in 2036. The
fourth and final tranche was valued at SR28 million and will mature in 2039.
The consistent issuance of these Islamic bonds is
in line with expectations outlined in a recent report by S&P Global, which
projected that global sukuk issuance could reach between $190 billion and $200
billion in 2025.
The growth is largely expected to come from
markets such as Saudi Arabia and Indonesia. S&P Global also reported that global
sukuk issuances amounted to $193.4 billion in 2024, a slight dip from $197.8
billion in 2023.
Adding further optimism to the market, a report
from Fitch Ratings released on Jan. 21 highlighted the expansion of the
environmental, social, and governance sukuk market.
Fitch expects that outstanding global issuance of
ESG sukuk will surpass $50 billion by 2025, with Saudi Arabia expected to play a
significant role in this growth.
Meanwhile, a December analysis by Kamco Invest
projected that Saudi Arabia would face the largest share of bond maturities in
the Gulf Cooperation Council region between 2025 and 2029, with an estimated
total of $168 billion.