RIYADH: Saudi Arabia’s National Debt Management Center restructured SR35.7 billion ($9.5 billion) worth of debt instruments into four new tranches of sukuk issuance with longer-term maturities, said a press release issued on Monday.
It has arranged the early purchase of outstanding debt instruments maturing in 2024, 2025, and 2026 with a total buyback of SR35.7 billion, described as the largest early transaction by the center.
Following the transaction, the NDMC issued four tranches of new sukuk offerings with a total value of SR35.9 billion.
The first tranche has a size of SR7.5 billion maturing in 2031, the second is SR14.5 billion with its maturity set in 2032, the third is SR10.8 billion maturing in 2033, and the final tranche is SR3.2 billion with its maturity set in 2038.
Through this initiative, the NDMC aims to strengthen the domestic money market and keep up with its developments, as per the press release.
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The NDMC issued four tranches of new sukuk offerings with a total value of SR35.9 billion.
The new offering comes under the Local Saudi Sukuk Issuance Program which aims to issue Shariah-complaint bonds to investors in the country.
The new offering comes under the Local Saudi Sukuk Issuance Program which aims to issue Shariah-complaint bonds to investors in the country.
The program is part of the Kingdom’s efforts to diversify its sources of financing, manage its fiscal needs, and develop the domestic debt market.
The NDMC stated that other initiatives will follow as the center aims to enhance the public finance market in the medium and long terms.
Appointed as joint lead managers, HSBC Saudi Arabia, Al-Rajhi Capital, SNB Capital, and Al-Jazira Capital will execute the new transaction.
In July 2023, the center issued its riyal-denominated sukuk offering with a value of SR2.63 billion divided into two tranches with long-term maturities.
The first tranche was at SR2.41 billion, which will mature in 2033, while the second is SR225 million with its maturity set in 2037.
Moreover, the center rolled out SR4.33 billion in riyal-denominated sukuk in May, also divided into two tranches.
The first tranche was SR1.3 billion maturing in 2033, while the second was SR3.03 billion maturing in 2037.
Saudi Arabia expects its financing needs to be around SR45 billion this year, the NDMC said in January 2023.
