Saudi Arabia Successfully Issues USD 5 Billion in Triple Tranche Sukuk

KSA, 30 May, 2024 :  The National Debt Management Center (NDMC) has successfully completed the issuance of international trust certificates (Sukuk) totaling USD 5 billion under the Kingdom's Global Trust Certificate Issuance Program. The issuance saw strong investor interest, with the order book reaching around USD 20 billion, indicating a fourfold oversubscription.

The issuance was structured in a triple tranche format: USD 1.25 billion for a 3-year Sukuk maturing in 2027, USD 1.5 billion for a 6-year Sukuk maturing in 2030, and USD 2.25 billion for a 10-year Sukuk maturing in 2034. The high bid-to-cover ratio demonstrates robust demand and international investor confidence in Saudi Arabia's economic strength and future investment prospects.

This marks Saudi Arabia's first triple tranche Sukuk issuance, reflecting NDMC's strategy to diversify funding sources and expand its investor base. The issuance aims to efficiently meet the Kingdom's financing needs, ensure continuous presence in debt markets, and manage debt repayments while considering market movements and portfolio risk management.

The success of this issuance was supported by several local and international banks and financial institutions. Citigroup Global Markets, BNP Paribas, and Goldman Sachs Limited acted as Joint Global Coordinators and Active Bookrunners, while AlJazira Capital, J.P. Morgan Securities Plc, and Standard Chartered served as Passive Bookrunners.

Source : www.mof.gov.sa