Arab News, Wednesday, May 24, 2023 | Thul-Qidah 4, 1444
Saudi Arabia’s NDMC closes May sukuk issuance at $1.15bn
Saudi Arabia:
Saudi Arabia’s National Debt Management Center has closed the issuance of SR4.33
billion ($1.15 billion) riyal-denominated sukuk in May.
The sukuk issuance was divided into two tranches.
The first tranche was SR1.3 billion maturing in 2033, while the second was
SR3.03 billion maturing in 2037, NDMC said in a statement issued on Tuesday.
“This issuance confirms the NDMC’s statement
(issued) in the mid of February 2022, that it will continue to consider
additional funding activities subject to market conditions and through available
funding channels locally or internationally,” the center said.
Sukuk, which is also called an Islamic bond, is a
debt product issued in accordance with Shariah or Islamic laws.
“This is to ensure the Kingdom’s continuous
presence in debt markets and manage the debt repayments for the coming years
while taking into account market movements and the government debt portfolio
risk management,” the statement added.
In May, NDMC raised $6 billion from the sale of
sukuk under its Global Trust Certificate Issuance Program.
Saudi Arabia sold a $3 billion six-year tranche at
80 basis points over US Treasuries and another $3 billion in 10-year notes.
Order books for the deal hit over $27 billion, it added.