The Kingdom of Saudi Arabia, acting through the Ministry of Finance (the "Issuer") announces the completion of an early redemption of a portion of the Issuer’s outstanding bonds maturing in August, September, November and December of this year 2020G with a total value of thirty-four billion two hundred and sixty million Saudi Riyal. At the same time, the Issuer has, at the request of selling bondholders, issued new sukuk under its local sukuk programme.
The National Debt Management Center (NDMC) announces the completion of arranging an international trust certificates issuance (Sukuk) in USD under the Kingdom's Global Trust Certificate Issuance Program (KSA Ijarah Sukuk), the Kingdom's first international issuance based on an Ijarah structure.This exercise is one of the initiatives of the National Debt Management Center (“NDMC”) intended to unify the local issuances of the Issuer under the framework of the Local Sukuk Programme of the Issuer in the Kingdom of Saudi Arabia.KSA Ijara Sukuk Limited, issued a total of USD 5.5 billion (equivalent to SAR 20.63 billion) Trust Certificates, divided into two tranches. The value of the first tranche was USD 2.25 billion (equivalent to SAR 8.44 billion) for a 5 -year Sukuk maturing in 2030. The second tranche totaled USD (3.25) billion (equivalent to SAR 12.19 billion) for a 10 -year Sukuk maturing in 2035. While the order book reached around USD 19 billion, which resulted in the subscription exceeding the total issuance by 3.5 times.
This step constitutes the first phase of the said initiative, with further phases to follow until complete unification of local issuances is achieved. The NDMC initiative is a continuation of the measures taken to strengthen the local market, which reflects the latest market developments, such as a high trading vloume in the secondary market and allowing all Sukuk holders to benefit from the Zakat redemption applied within the framework of the local Sukuk program.
This transaction is part of NDMC's strategy to diversify the investors' base to meet the Kingdom's financing needs from international debt capital markets efficiently and effectively. The level of investor demand for the Kingdom's issuances reflects their confidence in the strength of the Kingdom's economy and the outlook for future investment opportunities with it.The new sukuk issuances comprise four tranches with a total value of Thirty-four billion six hundred and forty-five million Saudi Riyals. The first tranche with an amount of SAR 8,970 million maturing in 2024, the second tranche with an amount of SAR 6,025 million maturing in 2028, the third tranche with an amount of SAR 6,500 million maturing in 2032 and the fourth tranche with an amount of SAR 13,150 million maturing in 2035.
A number of local and international banks and financial institutions contributed to this issuance. Citigroup, HSBC, JP Morgan, and Standard Chartered acted as Joint Global Coordinators and Active bookrunners on this transaction, ICBC and Mizuho as active Joint lead managers, while Abu Dhabi Islamic Bank, Dubai Islamic Bank and AL Jazira Capital acted as Passive Joint lead managers. The Issuer has appointed HSBC Saudi Arabia and Samba Capital & Investment Management Company as Joint Placement Agents and Dealer Managers with respect of this project