The National Debt Management Center Announces the Completion of USD 3.25 Billion Trust Certificates issuance
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 second international issuance based on an Ijarah structure.
KSA Ijara Sukuk Limited, issued a total of USD 3.25 billion (equivalent to SAR 12.19 billion) Trust Certificates, divided into two tranches. The value of the first tranche was USD 1.25 billion (equivalent to SAR 4.69 billion) for a 5 -year Sukuk maturing in 2031. The second tranche totaled USD (2) billion (equivalent to SAR 7.5 billion) for a 10 -year Sukuk maturing in 2036. While the order book reached around USD 16.5 billion, which resulted in the subscription exceeding the total issuance by 5 times.
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, effectively and opportunistically. 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.
*Numbers are rounded to the nearest decimal.