RIYADH: ’sNational Debt Management Center announcedthe closure ofthe riyal-denominatedsukuk programissuance for Junewiththe total bid amount received atSR2.5billion($667 million).
The total amountallocatedwas SR7.43 billion with thesukukissuancedivided into tranches—the first has a size of SR622 million maturing in 2030. The second tranche was valued at SR1.84 billion millionmaturing in 2035, the NDMC said in a statement
Also called an Islamic bond,sukukis a debt product issued according to Shariah or Islamic laws.
“This issuance confirms the NDMC's statement in the mid of February of this year that NDMC will continue, in accordance with the approved Annual Borrowing Plan, to consider additional funding activities subject to market conditions and through available funding channels locally or internationally,”NDMC’s websitestated.
This is to ensurethe Kingdom's continuous presence in debt markets and manage the debt repayments for the coming years while considering market movements and the government debt portfolio riskmanagement, thestatementadded.
According to anS&P Globalreport released in January,global sukuk issuances are expected to continue declining in 2023 to about$150 billioncompared to$155.8 billionin 2022 and$170.4 billionin 2021.
