JEDDAH: Saudi Arabia has advanced its plan to improve fiscal sustainability, maximise debt management, and expand the local debt market by completing a sukuk restructure and fresh issuance of more than SR120 billion ($32 billion). The early redemption of government sukuk due between 2025 and 2029, valued at around SR60.4 billion, was the Kingdom’s sixth early buyback transaction in the domestic market, according to the National Debt Management Centre.
The NDMC issued additional sukuk totalling SR60.3 billion in five tranches with maturities ranging from 2032 to 2040 in order to refinance these debts. In the face of regional and international uncertainty, the action bolsters Saudi Arabia’s larger Vision 2030 initiatives to diversify the economy, fortify fiscal buffers, and grow domestic capital markets.
The NDMC said in a statement: “This initiative allows NDMC to fulfil its role in managing the government debt obligations and future maturities and is a continuation of NDMC’s efforts to strengthen the domestic market.” In the medium and long term, it further stated, “This will also align NDMC’s effort with other initiatives to enhance/optimize the public fiscal.”
Five tranches with varying maturity dates made up the new sukuk offering. The first tranche matures in 2032 and is worth about SR21.5 billion. The third tranche, which matures in 2036, is worth SR14.2 billion, while the second tranche, which is around SR1.8 billion, matures in 2035. The fifth and final tranche is around SR16.9 billion and matures in 2040, while the fourth tranche is valued at SR5.9 billion and matures in 2039.
The NDMC and the Ministry of Finance, acting as the issuer, designated HSBC Saudi Arabia, SNB Capital, and Al Rajhi Capital, along with AlJazira Capital and Alinma Investment, as joint lead managers to assist the transaction.
Also Read:
Saudi e-Game Creators Excel in the “Zero to Hero Bootcamp in Riyadh
Damascus Aims to Reassure the West as Syria Relaunches its Interior Ministry
