The National Debt Management Center (NDMC) announced the completion of receiving investors' requests for the international trust certificates issuance (Sukuk), with a total value of USD 5 billion under the Kingdom's Global Trust Certificate Issuance Program.
The total order book reached around USD 20 billion, which equals an oversubscription of 4 times. The Kingdom issued a total of USD 5 billion (equivalent to SAR 18.75 billion) via a triple tranche sukuk offering. The value of the first tranche was USD 1.25 billion (equivalent to SAR 4.68 billion) for a 3 -year Sukuk maturing in 2027. The second tranche totaled USD 1.5 billion (equivalent to SAR 5.63 billion) for a 6 -year Sukuk maturing in 2030, while the third tranche totaled USD 2.25 billion (equivalent to SAR 8.44 billion) for a 10 -year Sukuk maturing in 2034.
The bid-to-cover ratio reflects the strong demand of the Kingdom's issuances, confirming the international investors' confidence in the strength of the Kingdom's economy and its investment opportunities future. That was shown in this issuance that oversubscribed with demand from a wide array of international investors and was allocated to a global mix of asset managers and financial institutions.
This issuance represents the Kingdom of Saudi Arabia's first triple tranche sukuk issuance that is a part of NDMC's strategy to diversify the Kingdom's funding sources and expand the investor base to meet the Kingdom's financing needs from international debt capital markets efficiently and effectively, to ensure the Kingdom's continuous presence in debt markets and manage the debt repayments for the coming years while taking into account market movements and the government debt portfolio risk management.
A number of local and international banks and financial institutions contributed to the success story of this issuance, Citigroup Global Markets, BNP Paribas, and Goldman Sachs Limited, acted as Joint Global Coordinators and Active bookrunners on this transaction. AlJazira Capital, J.P. Morgan Securities Plc, and Standard Chartered acted as Passive Bookrunners.
*Numbers are rounded to the nearest decimal.