Saudi Arabia Completes Sukuk Issuance for April, Reaches SR7.39 Billion
In a significant move, Saudi Arabia has successfully completed its riyal-denominated sukuk issuance for April, reaching a total amount of SR7.39 billion ($1.97 billion). This represents a substantial increase of 66.44 percent compared to the previous month.
Three Tranches of Shariah-Compliant Debt Product
The National Debt Management Center disclosed that the sukuk issuance was divided into three tranches. The first tranche, valued at SR2.35 billion, is set to mature in 2029. The second tranche, amounting to SR1.64 billion, has a maturity date in 2031. The third tranche totaled SR3.51 billion and is scheduled to mature in 2036.
Expanding Funding Activities to Reach SR138 Billion
According to a press statement from NDMC, the Kingdom plans to expand its funding activities in 2024, aiming to reach a total of SR138 billion. This exceeds the amount stated in the Annual Borrowing Plan, with a portion already covered up to date. The move is strategic, intended to capitalize on market opportunities for proactive financing, bolster state reserves, and accelerate transformative spending on strategic projects aligned with Saudi Vision 2030.
Global Growth in Sukuk Issuance Expected
Fitch Ratings anticipates continued growth in global sukuk issuance in the coming months, driven by funding and refinancing demands. Economic diversification efforts in the Gulf Cooperation Council region and the development of the debt capital market are additional factors that will fuel market growth. S&P Global’s report also projects significant sukuk issuance worldwide, driven by higher financing needs in Islamic nations and easing liquidity conditions globally.