(MENAFN - Saudi Press Agency)
Riyadh, February 25, 2021, SPA -- The National Debt Management Center has announced the receipt of subscriptions from investors for its second international issuance under the Kingdom of Saudi Arabia's Global Note Program in Euro, during which the issuance was more than 3 times oversubscribed with total orders amounting to more than 5 billion Euro.
His Excellency the Minister of Finance and Acting Minister of Economy and Planning, Mr. Mohammed Al-Jadaan, said that the euro-denominated issuance comes within the framework of the Center's efforts to secure the Kingdom's financing needs in accordance with the objectives of the fiscal policy and the public debt strategy. He pointed out that the center took advantage of the opportunity to enter the Euro market, the second largest after the U.S. Dollar market, by issuing debt instruments with negative returns, making it the largest tranche issued with a negative return outside the European Union.
Al-Jadaan indicated that the high demands proved the strength of the Kingdom of Saudi Arabia's capability to enter different markets without affecting the debt prices in the long term, as well as the economic and financial powers of the Kingdom and the possibility of consolidating and building strategic relationships with investors in different countries of the world.
Al-Jadaan affirmed that the National Debt Management Center, in light of its borrowing strategy, seeks to diversify financing instruments between the local and external markets, with a focus on developing and deepening local debt markets, in addition to seeking access to global debt markets as part of its risk management strategy and obtaining fair prices.
The alternative government financing methods have recently been utilized as part of the Ministry of Finance's plan to support the continuity and completion of major development projects in the Kingdom in order to achieve the goals of the Kingdom's Vision 2030, Al-Jadaan concluded.
06:03 LOCAL TIME 03:03 GMT
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