Saudi Arabia’s National Debt Management Center (NDMC) finalized its riyal-denominated sukuk issuance for September, totaling SR2.603 billion ($690 million).
In August, the Kingdom issued SR6.01 billion in sukuk, up from SR3.21 billion in July and SR4.4 billion in June. This decline in September aligns with Fitch Ratings’ prediction of a slowdown in the third quarter, expected to rebound later due to lower interest rates and oil prices.
Sukuk, or Islamic bonds, are Shariah-compliant debt instruments that offer investors partial ownership of an issuer’s assets until maturity. Saudi Arabia’s NDMC has been issuing these bonds as part of its Sukuk Issuance Program since 2017.
The September issuance was divided into six tranches:
- First tranche: SR255 million, maturing in 2027
- Second tranche: SR375 million, maturing in 2029
- Third tranche: SR638 million, maturing in 2031
- Fourth tranche: SR1.02 billion, maturing in 2034
- Fifth tranche: SR202 million, maturing in 2036
- Sixth tranche: SR112 million, maturing in 2039
Moody’s recently reported that the global sukuk market is set for strong performance in 2024, with issuance volumes expected to exceed those of 2023 despite a mid-year slowdown. The issuance of Shariah-compliant bonds could reach $200 billion to $210 billion this year, driven by robust sovereign issuance in the Gulf Cooperation Council and Southeast Asia, with Saudi Arabia playing a key role.