The National Debt Management Center announces the closure of November 2022 issuance under the Saudi Arabian Government SAR-denominated Sukuk Program. The Total Amount of All Bids Received SAR 9.918 Bn (Nine billion and nine hundred and eighteen million Saudi Riyals) and The Total Amount Allocated was set at SAR 6.608 Bn (Six billion and six hundred and eight million Saudi Riyals).
The Minister of Finance, H.E. Mohammed bin Abdullah Al-Jadaan, approves the Annual Borrowing Plan for the year 2023G after the National Debt Management Center's board endorsement in its last meeting. The plan includes the sovereign debt developments, debt market initiatives for the year 2022, and the 2023 funding plan and its guidelines, in addition to the domestic Sukuk issuance calendar under the Saudi Arabian Government SAR-denominated Sukuk Program.The Sukuk issuance was divided into two tranches as follows:- The first tranche has a size of SAR 5.573 Bn (Five billion and five hundred and seventy-three million Saudi Riyals) maturing in (2030).
- The second tranche has a size of SAR 1.035 Bn (one billion and thirty-five million Saudi Riyals) maturing in (2034).
This issuance confirms the NDMC's statement on the end of May 2022, that NDMC will continue, in accordance with the approved Annual Borrowing Plan, to consider additional funding activities subject to market conditions and through available funding channels locally or internationally. This is 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.
The 2023 plan has highlighted the estimation for financing needs at approximately SAR 45 bn, after securing approximately SAR 48 bn of the 2023 total financing needs in 2022 through pre-funding activities.
Despite the expectation of achieving a budget surplus during the year 2023, the Kingdom aims to continue its funding activities in the domestic and international markets with the objective of repaying debt principal that will mature during the year 2023 and during the medium-term; utilizing opportunities based on market conditions to enter into pre-funding and liability management transactions, financing strategic projects; and executing government-alternative funding transactions that will promote economic growth such as capital expenditure and infrastructure financing.
In addition, the NDMC will continue to consider additional funding activities subject to market conditions and through available funding channels locally or internationally. This is to ensure the Kingdom's continuous presence in debt markets and to enhance the Kingdom's debt portfolio characteristics, taking into account market movements and the government debt portfolio risk management.
2023 Annual Borrowing Plan