Saudi Arabia plans to issue $9.6bn in sukuk after buyback
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Saudi Arabia plans to issue $9.6bn in sukuk after buyback

Saudi Arabia plans to issue $9.6bn in sukuk after buyback

HSBC Saudi Arabia, Al Rajhi Capital, SNB Capital, and AlJazira Capital have been appointed as joint lead managers to lead the transaction

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Saudi Arabia plans to issue $9.6bn in sukuk after buyback GettyImages-1464744716-1

Saudi Arabia has completed an early purchase of more than SAR35.7bn ($9.5bn) of outstanding debt and will issue about SAR35.9bn in sukuk, as the kingdom plans to bolster its domestic market.

The government bought a portion of its debt instruments maturing in 2024, 2025 and 2026, the National Debt Management Center said in a statement on Sunday, August 12.

The buyback represents the largest early purchase transaction arranged by NDMC.

The Saudi government will issue new sukuk worth SAR35.9bn under the ‘Local Saudi Sukuk Issuance Program’, NDMC said.

Details of the local sukuk programme

The programme will be divided into four tranches, with issuances maturing in 2031, 2032, 2033 and 2038.

The initiative is part of NDMC’s efforts to strengthen the domestic market and “to keep up with market developments which have been reflected positively on the growing trading volume in the secondary market,” the agency said. The transaction will also align NDMC’s efforts with other initiatives to enhance public finances in the medium and long term.

HSBC Saudi Arabia, Al Rajhi Capital, SNB Capital, and AlJazira Capital have been appointed as joint lead managers to lead the transaction.

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