The success of the international sukuk issuance is a positive indicator of international investors’ confidence in the Kingdom’s economy and Saudi Arabia’s strategy to diversify sources of financing
Today, Wednesday, the National Debt Management Center in Saudi Arabia announced the success of its international issuance of the Kingdom’s government sukuks in US dollars worth $5 billion, as part of its international sukuk issuance program.
The issuance witnessed strong demand from international investors, with the volume of subscription requests exceeding $20 billion, equivalent to four times the size of the issuance.
The issuance was divided into three tranches: a tranche worth $1.25 billion due in 2027, a tranche worth $1.5 billion due in 2030, and a tranche worth $2.25 billion due in 2034. This great demand may reflect international investors’ confidence in the strength of the Saudi economy and their positive expectations. For the future of investment opportunities in the Kingdom.
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This issuance is the first issuance of a triple-tranche international sukuk in the Kingdom of Saudi Arabia, and comes within the framework of the National Debt Management Center’s strategy to diversify funding sources and expand the investor base to meet the Kingdom’s financing needs from global debt markets efficiently and effectively.
This issuance aims to strengthen the Kingdom’s presence in the debt markets and manage principal receivables for the coming years, taking into account market movement and risk management in the government debt portfolio.
A number of local and international banks and financial institutions participated in this issuance, with Citigroup, Goldman Sachs, and BNP Paribas acting as joint international coordinators and active bookrunners.
