The National Debt Management Center of Saudi Arabia has successfully completed its sukuk issuance for January, raising SAR8.825 billion ($2.35 billion) in riyal-denominated sukuk.
According to an official statement, the January offerings were divided into three tranches. The first tranche, valued at SAR3.656 billion, is scheduled to mature in 2029. The second tranche, valued at SAR2.822 billion, is due in 2034. The third tranche, worth SAR2.347 billion, is set to mature in 2039.
Read more: Saudi concludes November sukuk issuance at SAR2.67 bn
Sukuk, also known as Islamic bonds, are Shariah-compliant debt products.
المركز الوطني لإدارة الدين يقفل طرح شهر يناير 2024م ضمن برنامج صكوك المملكة المحلية بالريال السعودي حيث تم تحديد حجم الإصدار بمبلغ إجمالي قدره 8.825 مليار ريال سعودي.https://t.co/nkRCVV4Nkf pic.twitter.com/ZMYIAERR9C
— المركز الوطني لإدارة الدين – NDMC (@SaudiNDMC) January 16, 2024
S&P Global report
S&P Global predicts that global sukuk issuance in 2024 will range between $160 billion and $170 billion, driven by increased financing needs in core Islamic finance countries. The report also highlights that the sector’s growth is supported by improved liquidity conditions worldwide.
Additionally, the report expects sustainable Shariah-compliant bond volumes to rise in 2024, following the success of the UN Climate Change Conference held in Dubai last year.
Earlier this month, it was announced that the NDMC plans to launch a sukuk savings program to further develop the local market.
Also in January, NDMC announced the successful completion of investor applications for the first international bond issuance of 2024 under the Kingdom’s bonds program. As per the Center’s statement, the total value of underwriting applications reached approximately $30 billion, surpassing the total issuance of $12 billion (equivalent to SAR45 billion) by more than two and a half times.
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