The Saudi Stock Exchange is poised to enhance its financial offerings by listing government debt instruments valued at SR5.17 billion, equivalent to $1.37 billion. This move comes as the Ministry of Finance’s application to list these instruments has received the green light.
Comprising two separate tranches, the debt instruments include Issuance Number 10-01-2024, totaling SR2.82 billion, and Issuance Number 15-01-2024, valued at SR2.35 billion.
According to a Saudi Exchange statement, the listing adheres to the current listing regulations and trading is set to kick off on January 22, 2024.
This integration is expected to invigorate the market by introducing a new layer of investment options, thereby amplifying its diversity and vibrancy. Since the launch of its debt market in 2018, the Saudi Exchange has become a significant player in the region, listing a variety of government securities including sukuk and bonds.
Continuous improvements have been implemented to attract more listings in Saudi currency, contributing to the market’s expansion.
Additionally, the National Debt Management Center (NDMC) wrapped up its riyal-denominated sukuk issuance for January, amassing SR8.825 billion on January 16. This issuance was segmented into three parts: the first tranche, maturing in 2029, valued at SR3.656 billion; the second, due in 2034, at SR2.822 billion; and the third, maturing in 2039, at SR2.347 billion.
Global sukuk issuance is anticipated to reach between $160 billion and $170 billion in 2024 due to increased financing requirements in key Islamic finance nations, as per S&P Global’s January report. The report also highlights the potential of sustainable sukuk to grow, although it currently represents a small portion of the market. Moreover, the role of Islamic finance and sukuk in tackling climate change was underscored at the recent COP28 summit in the UAE.
In a move to further cultivate the domestic market, the NDMC announced plans earlier this month to initiate a sukuk savings program.