The National Debt Management Center (NDMC) has successfully completed the December 2023 issuance under the Saudi Arabian Government’s SAR-denominated Sukuk Program. The initiative received a substantial sum of bids totaling SAR 14.125 billion, from which SAR 10.553 billion was allocated.
The recent Sukuk issuance was allocated across two separate tranches. The first tranche amounts to SAR 2.579 billion and is set to mature by 2030. Following suit, the second tranche, with an allocation of SAR 7.973 billion, will reach maturity five years later in 2035.
This financial move is in line with the NDMC’s earlier announcement in mid-February 2023, which indicated the center’s intention to pursue additional funding activities in accordance with the approved Annual Borrowing Plan. The decision to issue these Sukuk is influenced by prevailing market conditions and the pursuit of funding through various channels, both locally and internationally.
The strategy underscores Saudi Arabia’s commitment to maintaining an active role in the debt markets. Furthermore, it is a part of the broader effort to manage upcoming debt repayments effectively while taking into consideration market dynamics and the risk management of the government’s debt portfolio.