Riyadh: The National Debt Management Center of Saudi Arabia has announced the conclusion of its sukuk program issuance for June, with a total bid amount of SR2.5 billion ($667 million) received.
The allocated amount reached SR7.43 billion, and the sukuk issuance was divided into two tranches. The first tranche, maturing in 2030, amounted to SR622 million, while the second tranche, maturing in 2035, was valued at SR1.84 billion. Sukuk, also known as Islamic bonds, are debt products issued in accordance with Shariah or Islamic laws.
The NDMC's website stated that this issuance reaffirms their earlier statement in February, confirming their commitment to pursuing additional funding activities as per the approved Annual Borrowing Plan, subject to market conditions and utilizing available funding channels domestically and internationally.
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The purpose of these activities is to ensure the Kingdom's continued presence in debt markets, effectively manage debt repayments in the upcoming years, and consider market movements and risk management of the government debt portfolio.
In January, an S&P Global report projected a decline in global sukuk issuances for 2023, estimating around $150 billion compared to $155.8 billion in 2022 and $170.4 billion in 2021.
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