Saudi Arabia’s National Debt Management Center (NDMC) announced recently the completion of receiving investor orders for the International Euro-denominated bonds under the Kingdom’s Global Medium-Term Note Issuance Program.
The total order book reached around 10 billion euros ($10.51 billion), which equals an oversubscription of 4 times the total issuance of 2.25 billion euros ($2.36 billion).
The bond was issued in two tranches, including an inaugural green tranche. The value of the green tranche is 1.5 billion euros for a 7-year bond maturing in 2032. Meanwhile, the second tranche totaled 750 million euros for a 12-year bond maturing in 2037.
Saudi Arabia’s first issuance to include inaugural green tranche
This bond issuance is Saudi Arabia’s first issuance to include an inaugural green tranche and is part of an initiative under the Financial Sector Development Program aimed at supporting the Kingdom’s ambitious sustainability goals and achieving net-zero emissions.
It also highlights the Kingdom’s efforts to investors and market participants, representing a significant step toward realizing the objectives of Saudi Vision 2030.
Last week, the NDMC announced the closure of the February 2025 issuance under the government’s SAR-denominated sukuk program. The total amount allocated was set at SAR3.071 billion. The Sukuk issuance was divided into four tranches. The first tranche had a size of SAR585 million, maturing in 2029, while the second tranche had a size of SAR1.706 billion, maturing in 2032.
In addition, the third tranche had a size of SAR404 million, maturing in 2036. Meanwhile, the fourth tranche had a size of SAR376 million, maturing in 2039.
Read: Saudi Arabia raises $818.8 million in February four-tranche sukuk issuance
Saudi debt capital market to surpass $500 billion in 2025
The GCC region’s debt capital market reached a milestone of around $1 trillion outstanding at the end of November 2024 following an 11 percent year-on-year expansion. In a recent analysis, Fitch Ratings expected the GCC region’s debt capital markets to grow further and for the region to remain among the largest emerging-market dollar debt issuers in 2025 and 2026, excluding China.
The rating agency also expects the region to remain the largest sukuk issuer and investor globally, noting that 40 percent of its debt capital market is sukuk. Notably, Fitch rates around 70 percent of GCC US dollar sukuk, 81 percent of which is investment-grade, and with no defaults.
Fitch Ratings also expected robust activity in Saudi Arabia’s debt capital market in 2025, driven by Vision 2030 initiatives, deficit funding needs, economic diversification, maturing obligations and ongoing reforms.
In 2024, Saudi Arabia became the largest dollar debt issuer in emerging markets outside China, the largest debt capital market in the GCC, and the largest dollar sukuk issuer globally. Almost all Saudi riyal issuance and ESG issuance in 2024 were in sukuk format.
“2025 started strong, with a growing pipeline of issuances, as we expect the market to surpass $500 billion even as soon as year-end. This growth will be driven by Vision 2030 initiatives and significant government support, alongside favorable funding conditions,” stated Bashar Al Natoor, global head of Islamic finance at Fitch Ratings.
