Riyadh, Saudi Arabia–The Saudi National Debt Management Center (NDMC) has issued new sukuk worth $9.57 billion under the Local Saudi Sukuk Issuance Program, in addition to an early purchase of more than $9.52 billion.
In a statement carried by the Saudi Press Agency (SPA), NDMC outlined that such a step is part of NDMC’s efforts to activate its role in managing its public debt commitments and future entitlements, as well as strengthening the state’s public finances in the medium and long term.
The NDMC said the new sukuk issuances would be done in four tranches with the first, amounting to about $2 billion, maturing in 2031. The second, valued at roughly $3.86 billion, is set to mature in 2032, with the third tranche, amounting to $2.88 billion, maturing in 2033, and the fourth, valued at approximately $853 million, maturing in 2038.
In March 2022, NDMC closed issuance of Saudi riyal-denominated sukuk, valued at SR10.3 billion ($2.75 billion).
The issuance was divided into two tranches. The first tranche had a size of SR3.5 billion ($930million) maturing in 2030, while the second tranche had a size of SR6.8 billion ($1.81billion) and matures in 2034.
Additionally, the new issuance was part of the Kingdom’s Sukuk Issuance Program, NDMC said in a statement.
The program was established through NDMC in July 2017 by the Saudi Finance Ministry.
It came amid rising demand for both international and domestic fixed income markets that provide safe and guaranteed returns.
