Riyadh, November 20, 2024 – The National Debt Management Center (NDMC) has successfully concluded the issuance of the November 2024 series under the Saudi Arabian Government’s SAR-denominated Sukuk Program, raising a total of SAR 3.415 billion. This marks a significant milestone in the Kingdom’s ongoing efforts to strengthen its financial position and diversify funding sources through Islamic debt instruments.
The Sukuk issuance was strategically structured into five distinct tranches, each with varying maturity dates to provide flexibility and ensure a balanced debt profile. The breakdown of the issuance is as follows:
- First Tranche: The largest tranche, amounting to SAR 2.524 billion, will mature in 2029. This tranche is expected to contribute significantly to meeting the government’s medium-term financing needs, offering investors a relatively shorter horizon.
- Second Tranche: SAR 434 million in Sukuk was issued with a maturity in 2031. This tranche extends the government’s debt profile over a longer duration, providing additional stability to its financing structure.
- Third Tranche: A smaller portion, SAR 137 million, was allocated with a maturity in 2034. This tranche serves as a strategic addition to the government’s long-term funding mix.
- Fourth Tranche: The fourth tranche, valued at SAR 10 million, has a maturity date in 2036. This represents a relatively small but important component of the overall issuance, contributing to the diversification of the government’s Sukuk portfolio.
- Fifth Tranche: The final tranche, amounting to SAR 310 million, will mature in 2039, providing a longer-term funding option and enhancing the overall maturity profile of the Sukuk issuance.
The NDMC’s latest Sukuk issuance aligns with Saudi Arabia's broader financial strategy, supporting the government's Vision 2030 objectives to strengthen its economic infrastructure and attract further investment into the Kingdom. The issuance reflects the continued success of the Saudi government’s Sukuk program, which has garnered significant interest from both domestic and international investors. By tapping into the Islamic finance market, the NDMC further diversifies the Kingdom’s sources of funding, while also offering investors access to a stable and attractive investment opportunity in the growing Saudi market.
This move also underscores Saudi Arabia’s ongoing commitment to maintaining fiscal stability and optimizing its capital markets, paving the way for continued growth and development in the years to come.