Saudi Arabia’s National Debt Management Center (NDMC) has successfully secured a syndicated loan of $11 billion as part of the government’s medium-term debt strategy. The loan is aimed at diversifying the Kingdom’s funding sources and is structured for a 10-year term.
The funding involved the collaboration of 14 international financial institutions from Asia, the Middle East, Europe, and the US, aligning with the approved annual borrowing plan. The transaction aims to capitalize on market opportunities and execute alternative government financing activities.
The NDMC stated that the loan will support economic growth by funding development and infrastructure projects that are aligned with Saudi Vision 2030. The objective is to address the Kingdom’s financial requirements judiciously over the medium to long term, balancing cost considerations and an acceptable level of risk.
Emphasizing the immense interest and confidence in Saudi Vision 2030 and the Kingdom’s robust economic resilience, the widespread participation in this syndicated loan serves as a testament to the proactive approach of Saudi Arabia in securing diverse and robust financing sources. It reinforces the commitment to realizing key objectives, particularly in economic diversification.
In addition to the syndicated loan, NDMC recently concluded the issuance of its riyal-denominated sukuk program, a debt product issued in accordance with Shariah or Islamic laws. The bid amount totaled SR2.66 billion ($710 million), reflecting a decline compared to previous months. The sukuk program issuance supports the Kingdom’s long-term development goals and strengthens the domestic money market.
Saudi Arabia’s NDMC remains steadfast in its pursuit of financial strategies that align with its long-term development goals. The successful syndicated loan and sukuk program issuance demonstrate the Kingdom’s commitment to diversifying funding sources and supporting economic growth and infrastructure projects in line with Saudi Vision 2030.