RIYADH: Saudi Arabia’s National Debt Management Center has successfully secured a syndicated loan of $11 billion as part of the government’s medium-term debt strategy, aimed at diversifying the Kingdom’s funding sources.
Structured for a 10-year term, the funding involved the collaboration of 14 international financial institutions spanning Asia, the Middle East, Europe, and the US.
Aligned with the approved annual borrowing plan, the transaction aims to capitalize on market opportunities to execute alternative government financing activities.
NDMC stated that it will support economic growth by funding development and infrastructure projects aligned with Saudi Vision 2030.
It added the objective is to address the Kingdom’s financial requirements judiciously over the medium to long term, balancing cost considerations and an acceptable level of risk.
NDMC emphasized that the widespread participation in this syndicated loan underscores not only immense interest but also confidence in both Saudi Vision 2030 and the Kingdom’s robust economic resilience.
The success of this syndicated loan serves as a testament to the Kingdom’s proactive approach to securing diverse and robust financing sources. It reinforces the commitment to realizing key objectives, particularly in the realm of economic diversification, as outlined in the Saudi Vision 2030 initiative.
In November, NDMC concluded the issuance of its riyal-denominated sukuk program, with a bid amount totaling SR2.66 billion ($710 million), reflecting a decline of 33.16 percent compared to October.
Sukuk, which is also called an Islamic bond, is a debt product issued in accordance with Shariah or Islamic laws.
The November issuance comprised two tranches, with the first tranche valued at SR1.99 billion set to mature in 2031 and the second worth SR668 million maturing in 2035.
In October, sukuk issuance amounted to SR3.98 billion, while in September, it reached SR2.45 billion.
NDMC remains steadfast in its pursuit of financial strategies that align with the Kingdom's long-term development goals.
In August, NDMC took a strategic step of restructuring SR35.7 billion of debt instruments into four new sukuk tranches featuring longer-term maturities in 2024, 2025 and 2026.
As outlined in a press statement at that time, the initiative aimed to strengthen the domestic money market and stay up-to-date with its developments.
