The National Debt Management Center announces that it has closed the June 2021 issuance under the Saudi Arabian Government SAR-denominated Sukuk Program. The issuance size was set at SAR 8.265 Billion (Eight Billion and two hundred fifty six Million SAR).
The Sukuk issuances were divided into three tranches as follows:
• The first tranche has a size of SAR 2.755 Billion (Two Billion and seven hundred fifty five Million SAR), matures in (2028).
The Ministry of Finance has announced the receipt of subscriptions from investors for its third international sukuk issuance. Under the Saudi Government Sukuk Program, and in US Dollars, the issuance is part of the Ministry of Finance's commitment to the development of the Shariah-compliant debt capital markets and saw massive demand from a broad range of international investors.
• The second tranche has a size of SAR 4.650 Billion (Four Billion six hundred and fifty Million SAR), matures in (2031).
The issuance was 5 times oversubscribed, with total orders amounting to more than USD 13 billion, reflecting the strength and robustness of the Saudi economy. Priced at the lowest yield issued by the Kingdom for 10 year securities, the level of investor demand demonstrates that the Kingdom represents the region’s safe haven for fixed income investors.
The Kingdom will issue a total of USD 2.5 billion Sukuk maturing October 2029 with settlement on or around 29th October. J.P. Morgan, Standard Chartered and Bank Al Jazira Capital were appointed by the Debt Management Office as dealers for this issuance. The issuance will be listed on the London Stock Exchange.