Saudi Arabia plans to issue $9.6 billion worth of sukuk after the buyback

Saudi Arabia plans to issue $9.6 billion worth of sukuk after the buyback

(Bloomberg) — Saudi Arabia has completed an early purchase of more than 35.7 billion riyals ($9.5 billion) of outstanding debt, and will issue about 35.9 billion riyals of sukuk as the kingdom plans to boost its domestic market.

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The National Debt Management Center said in a statement on Sunday that the government has purchased a portion of its debt instruments maturing in 2024, 2025 and 2026. The buyback represents the largest early purchase transaction to be arranged by NDMC.

NDMC said that the Saudi government will issue new sukuk worth 35.9 billion riyals as part of the Saudi Domestic Sukuk Issuance Programme. The program will be divided into four tranches, with releases due in 2031, 2032, 2033 and 2038.

The agency said that this initiative is part of NDMC’s efforts to strengthen the local market and “to keep abreast of market developments, which reflected positively on the increasing volume of trading in the secondary market.” The deal will also align NDMC’s efforts with other initiatives to boost public finances in the medium and long term.

Read more: Aramco profits will help the Saudi government avoid fiscal deficit

HSBC Saudi Arabia, Al Rajhi Capital, Swiss National Bank Capital and AlJazira Capital have been appointed as Joint Lead Managers to lead the transaction.

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