By Elias Al Helou
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Home Sector Markets Saudi Arabia closes March issuance of sukuk program at $1.17 billion

Saudi Arabia closes March issuance of sukuk program at $1.17 billion

To cater to investors with different investment horizons, the issuance has been divided into three tranches
Saudi Arabia closes March issuance of sukuk program at $1.17 billion
In February, NDMC raised a total of $2.09 billion from sukuk issuance.

Published: Wed 20 Mar 2024, 1:57 PM

Last updated: Wed 20 Mar 2024, 1:59 PM

Saudi Arabia’s National Debt Management Center (NDMC) has successfully concluded the collection of investor orders for its domestic issuance in March, as part of the SAR-denominated Sukuk Program.

According to a statement released by the NDMC on March 19, the total allocated amount reached SAR4.44 billion ($1.17 billion).

Read more: Sukuk issuance in Saudi Arabia: National debt management center raises SAR8.825 billion in January

The issuance is divided into three tranches. The first tranche has a value of SAR203 million and will mature in 2029. The second tranche is valued at SAR3.69 billion and will mature in 2034. The third tranche has a value of SAR540 million and will mature in 2039.

In February, NDMC successfully completed the issuance for February 2024 under the Saudi Arabian Government’s Sukuk Program, raising a total of SAR7.874 billion ($2.09 billion). To cater to investors with different investment horizons, the issuance has been divided into three tranches.

The first tranche is valued at SAR1.180 billion and is set to mature in 2029. This tranche is specifically designed for investors seeking medium-term investment opportunities within the Kingdom’s sovereign Sukuk offerings.

The second tranche, totaling SAR2.720 billion, has a longer maturity date of 2034. It targets investors who desire a more extended investment horizon, striking a balance between medium and long-term financial commitments.

The third and largest tranche amounts to SAR3.973 billion, with a maturity date set for 2039. This tranche is tailored for investors inclined towards long-term investments, providing a substantial period before maturity. This aligns with the strategic financial planning and stability objectives of the Kingdom’s debt management strategy.

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