Saudi Arabia's National Debt Management Center Concludes Riyal-Denominated Sukuk Issuance
Date
5/24/2023 2:25:29 AM
(MENAFN) Saudi Arabia's National Debt Management Center (NDMC) has successfully completed the issuance of SAR 4.33 billion (USD1.15 billion) worth of riyal-denominated sukuk in May. The sukuk offering was divided into two tranches, with the first tranche valued at SAR 1.3 billion maturing in 2033, and the second tranche worth SAR 3.03 billion maturing in 2037. The NDMC, in a statement released on Tuesday, confirmed that this issuance aligns with its previous announcement in February 2022, indicating its intention to pursue additional funding activities based on market conditions and available funding channels, both domestically and internationally.
Sukuk, also known as Islamic bonds, comply with the principles and guidelines of Shariah or Islamic law. By issuing sukuk, the NDMC aims to maintain a consistent presence in the debt markets while effectively managing the Kingdom's debt repayments in the coming years. The NDMC emphasized that its approach considers market dynamics and incorporates risk management strategies for the government's debt portfolio.
In addition to the recent sukuk issuance, the NDMC has also been active in raising funds through its Global Trust Certificate Issuance Program. In May, the center successfully raised USD6 billion from the sale of sukuk bonds. The offering comprised a USD3 billion tranche with a six-year maturity at a spread of 80 basis points over US Treasuries, and another USD3 billion tranche with a ten-year maturity. The strong demand for the sukuk issuance was evident as the order books for the deal reached over USD27 billion, reflecting investor confidence in Saudi Arabia's debt instruments.
MENAFN24052023000045014228ID1106303645
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.