Saudi Arabia's SAR-denominated Sukuk Program concludes July 2023 issuance

Riyadh, July 25, 2023, In a recent announcement, the National Debt Management Center revealed the conclusion of the July 2023 issuance as part of the Saudi Arabian Government's SAR-denominated Sukuk Program. In a remarkable display of financial prowess, the total sum of all bids received reached an impressive SAR 2.637 billion. In a significant financial decision, a staggering amount of SAR 2.637 billion (equivalent to two billion and six hundred and thirty-seven million Saudi Riyals) has been allocated. The Sukuk issuance was divided into two tranches, as outlined below: In a recent development, it has been announced that there are two tranches of bonds set to mature in the coming years. The first tranche, with a substantial size of SAR 2.412 billion (equivalent to two billion and four hundred and twelve million Saudi Riyals), is scheduled to mature in the year 2033. Meanwhile, the second tranche, with a slightly smaller size of SAR 225 million (equivalent to two hundred and twenty-five million Saudi Riyals), is set to mature in the year 2037. These bonds hold significant value and are expected to play a crucial role in the financial landscape in the years to come. In a recent announcement, the NDMC reaffirmed its commitment to pursue additional funding activities in line with the approved Annual Borrowing Plan. This decision, made in mid-February 2023, comes as the NDMC aims to secure necessary funds while taking into account prevailing market conditions. The organization is exploring various funding channels, both domestically and internationally, to meet its financial requirements. In a strategic move aimed at securing the Kingdom's ongoing presence in debt markets, the government has taken steps to effectively manage debt repayments in the coming years. This proactive approach considers market fluctuations and prioritizes the risk management of the government's debt portfolio. The National Debt Management Center (NDMC) is at the forefront of these efforts, working diligently to safeguard the Kingdom's financial stability.