ALBAWABA – Saudi Arabia will issue billions in Sharia-compliant bonds, also known as Sukuk, to bolster the domestic market, Bloomberg reported Monday.
The Kingdom has purchased $9.52 billion worth of outstanding debt, in debt instruments maturing in 2024, 2025 and 2026, the National Debt Management Center said in a statement on Sunday.
Under the Local Saudi Sukuk Issuance Program, NDMC said the government is planning to issue Sukuk for $9.57 billion, according to Bloomberg.
The program will be divided into four tranches, with issuances maturing in 2031, 2032, 2033 and 2038.
The initiative is part of NDMC’s efforts to strengthen the domestic market. The objective is “to keep up with market developments which have been reflected positively on the growing trading volume in the secondary market,” the agency said.
The transaction will also align NDMC’s efforts with other initiatives to enhance public finances in the medium and long term.
HSBC Saudi Arabia, Al Rajhi Capital, SNB Capital, and AlJazira Capital have been appointed as joint lead managers to lead the transaction, as reported by Bloomberg.
