Saudi Arabia has successfully issued a $12 billion bond as part of its Global Medium-Term Note Issuance Program, attracting significant interest with an order book reaching $37 billion. This issuance was managed by the National Debt Management Center (NDMC) and included three segments: a $5 billion bond due in 2028, a $3 billion bond maturing in 2031, and a $4 billion bond set for 2035.
The oversubscription highlights strong investor confidence in the nation’s economic prospects. This bond issuance aligns with Saudi Arabia’s strategy to broaden its investor base and meet financial needs efficiently through global debt markets.
This move is part of the country’s broader fiscal strategy, which includes a borrowing plan aiming for approximately $37 billion in funding to cover a projected budget deficit and refinance maturing debt. This approach supports the Kingdom’s fiscal stability and economic transformation under Vision 2030.
The NDMC has been active in the global bond market, using proceeds to address budgetary shortfalls and service existing debt. Bond pricing is benchmarked against US Treasury bonds, indicating a strategic approach to accessing international markets.
In addition to bond issuance, the NDMC secured a $2.5 billion Shariah-compliant revolving credit facility, underscoring its commitment to diversifying funding sources. This initiative supports Saudi Arabia’s medium-term debt strategy and economic growth objectives.
In early 2024, Saudi Arabia was recognized as the largest dollar debt issuer among emerging markets, excluding China, and the top global issuer of sukuk. This rise in issuance is driven by the government’s funding needs and major economic projects.
Looking ahead, Fitch Ratings anticipates a rise in dollar-denominated debt issuance by Saudi Arabia in 2025, as oil revenues are expected to moderate. The Kingdom’s debt market is projected to exceed $500 billion in outstanding debt, fueled by government giga-projects, deficit funding, and economic diversification efforts.