Saudi Arabia’s NDMC closes May’s sukuk issuance at $1.15bn

Saudi Arabia’s National Debt Management Center has closed the issuance of SR4.33 billion ($1.15 billion) riyal-denominated sukuk in May.

The total value of bids stood at SR4.33 billion, NDMC said in a statement issued on Tuesday.

The sukuk issuance was divided into two tranches. The first tranche had a size of SR1.3 billion maturing in 2033, while the second had a size of SR3.03 billion which is set to mature in 2037.

“This issuance confirms the NDMC’s statement (issued) in the mid of February 2022, that it will continue to consider additional funding activities subject to market conditions and through available funding channels locally or internationally,” the center said.

Sukuk, which is also called an Islamic bond, is a debt product issued in accordance with Shariah or Islamic laws.

“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 statement added.

According to recent report issued by US-based Fitch Ratings, the global sukuk issuance for the second quarter is building up even as it faces short-term uncertainties amid continued macro volatilities.

“Islamic investors’ liquidity and investment appetite continues to be supportive of the longerterm sukuk story,” said Bashar Al-Natoor, the global head of

Islamic finance at Fitch Ratings, in its global outlook report.

Earlier in May, NDMC raised $6 billion from the sale of sukuk, under its Global Trust Certificate Issuance Program. Saudi Arabia sold a $3 billion six-year tranche at 80 basis points over US Treasuries and another $3 billion in 10-year notes. Order books for the deal hit over $27 billion, it added.