The Kingdom, represented by the Ministry of Finance (the Issuer), announced the completion of an early purchase of a portion of the Issuer’s existing bonds and sukuk maturing in August, September, October, November, and December of next year (2022), with a total value exceeding 33 billion riyals, in addition to the issuance of new sukuk under the Saudi Riyal Sukuk Issuance Program.
This operation is one of the initiatives of the National Debt Management Center aimed at consolidating the Issuer’s domestic issuances within the framework of the Saudi Riyal Sukuk Issuance Program.
This step also marks the second phase of the initiative that began in 2020, which will be followed by further phases leading to the full consolidation of domestic issuances and allowing all sukuk holders to benefit from the zakat refund mechanism applied under the Saudi Riyal Sukuk Issuance Program.
This comes as a continuation of the Center’s efforts to strengthen the domestic market and keep pace with market developments, which have been reflected in the rise in trading volume in the secondary market, It also reinforces the Center’s role in managing government debt obligations and future maturities, ensuring the Kingdom’s access to debt markets at a fair price, and integrating these efforts with other initiatives to strengthen public finances in the medium and long term.
The Center divided the new sukuk issuances into four tranches with a total value of 33.48 billion Saudi riyals.
The first tranche was worth 11.11 billion riyals and matures in 2029, while the second tranche was worth 5.57 billion riyals and matures in 2031, while the third tranche was worth 11.36 billion riyals and matures in 2033, and the fourth tranche was worth 5.44 billion riyals and matures in 2036.
The Ministry of Finance and the Center jointly appointed HSBC Saudi Arabia, Al-Ahli Capital, and Al-Rajhi Capital as lead managers, in addition to Al-Jazira Capital and Al-Inmaa Investment as co-managers.