RIYADH: Saudi government-issued debt instruments worth SR5.17 billion ($1.37 billion) are set to be listed on the Kingdom’s stock exchange, following the latter’s approval of the Ministry of Finance’s request.
The breakdown of this valuation includes two distinct offerings: the first, Issuance No. 10-01-2024, amounts to SR2.82 billion, and the second, Issuance No. 15-01-2024, is valued at SR2.35 billion.
Saudi Exchange said in a statement that this approval is in accordance with the established listing rules, and the trading is scheduled to commence on Jan. 22, 2024.
In its detailed resolution, it explained that investors and market participants can anticipate the integration of these financial instruments into the trading landscape, further enhancing the diversity and dynamism of the financial market.
Saudi Exchange launched its debt market in 2018 with the listing of several primary and secondary government instruments.
FASTFACTS
• The breakdown of this valuation includes two distinct offerings: the first, Issuance No. 10-01-2024, amounts to SR2.82 billion, and the second, Issuance No. 15-01-2024, is valued at SR2.35 billion.
• Saudi Exchange launched its debt market in 2018 with the listing of several primary and secondary government instruments.
The exchange’s debt market has since grown into one of the largest in the region and several enhancements have been made, encouraging issuers to list more Saudi currency, sukuk and bonds.
Meanwhile,Saudi Arabia’s National Debt Management Center concluded its riyal-denominated sukuk issuance for January at SR8.825 billion on Jan. 16.
According to an official statement, the January offerings were divided into three tranches. The first, valued at SR3.656 billion, is set to mature in 2029, and the second, valued at SR2.822 billion, is due in 2034. The third tranche worth SR2.347 billion is set to mature in 2039.
Sukuk issuance globally is expected to total between $160 billion and $170 billion in 2024 thanks to higher financing needs in some core Islamic finance countries, according to S&P Global in a report released earlier in January.
“Sustainable sukuk will also continue to contribute to the increase in sukuk issuance, which is still low, while the recently concluded COP28 in the UAE highlighted the role Islamic finance and sukuk can play in addressing climate change,” said S&P Global. Earlier this month, it was announced that NDMC is on track to launch a sukuk savings pro- gram to further develop the local market.
Speaking at the Capital Market Forum, Hani Al-Medaini, CEO of NDMC, said that the center has planned several initiatives to help the domestic market grow and strengthen.
The official informed that NDMC is planning to get riyal-denominated sukuk included in global indices with the help of the Capital Market Authority.
He added: “The CMA is leading us on that front while providing full support. That will help in creating more liquidity in our domestic market.”
“Sustainable sukuk will also continue to contribute to the increase in sukuk issuance, which is still low, while the recently concluded COP28 in the UAE highlighted the role Islamic finance and sukuk can play in addressing climate change,” said S&P Global in the report.
S&P Global further noted that digitalization could unlock some opportunities by streamlining sukuk issuance, even though it demands the harmonization of legal documents and a standardized interpretation of the Shariah.
