RIYADH: Saudi Arabia’s National Debt Management Center has completed the first offering of international bonds in 2024 at a value of SR45 billion ($12 billion).
With a total bid amount reaching SR112.50 billion, representing an oversubscription of 2.5 times, the issuance was divided into three tranches, NDMC said in a statement.
The first tranche, a six-year bond, was valued at SR12.19 billion, set to mature in 2030, while the second one at SR15 billion is due in 2034.
The third tranche totaled SR17.81 billion, for a 30-year bond will be maturing in 2054.
“This transaction is part of NDMC’s strategy to diversify the investors’ base and meet the Kingdom’s financing needs from international debt capital markets efficiently and effectively,” the center said.
It added: “The bid-to-cover ratio reflects the strong demand of the Kingdom’s issuances, confirming the investors’ confidence in the strength of the Kingdom’s economy and its investment opportunities future.”
In December 2023, NDMC had closed its riyal-denominated sukuk at SR10.53 billion, signifying a rise of 295 percent compared to November.
In November, Saudi Arabia’s sukuk issuance amounted to SR2.66 billion, while in October, it was SR3.98 billion.
Upon completion of the sukuk issuance, NDMC said: “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 sukuk offering in December was divided into two tranches, with the first tranche valued at SR2.57 billion, and the second at SR7.97 billion.
“This issuance confirms the NDMC’s statement on the mid of February 2023, 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,” the center added at that time.
In December, NDMC also secured a syndicated loan worth SR41.26 billion, aligned with the government’s medium-term debt strategy, aimed at diversifying the Kingdom’s funding sources.
Structured for a 10-year term, the funding involved the collaboration of 14 international financial institutions spanning Asia, the Middle East, Europe, and the US.