RIYADH: To speed up its economic diversification efforts, Saudi Arabia issued sukuk in March, raising SR2.64 billion ($704 million). The Kingdom is still looking for possibilities in the debt markets. The most recent issue in riyals follows issuances of SR3.07 billion in February and SR3.72 billion in January.
Additionally, Saudi Arabia raised SR3.41 billion in November and SR11.59 billion in December. As part of its Vision 2030 economic reform plan, the Kingdom has been using debt sales to finance projects, which has given it a significant position in the global sukuk market.
According to a statement from Saudi Arabia’s National Debt Management Center, the March issuance was split into four tranches, the first of which was priced at SR364 million and scheduled to expire in 2027.
The third tranche, worth SR1.46 billion, is scheduled to mature in 2032, while the second tranche, for SR316 million, is due in 2029. The fourth tranche, worth SR500 million, is set to expire in 2039. By Islamic finance principles, investors can hold a portion of an issuer’s assets through sukuk, a financing mechanism that complies with Shariah.
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