Saturday, November 4, 2023

Saudi Arabia’s NDMC Raises $6 Billion from Islamic Bond Sale


Saudi Arabia’s National Debt Management Center has successfully raised $6 billion through the sale of Islamic bonds, or sukuk, under its Global Trust Certificate Issuance Program. The Kingdom sold $3 billion worth of six-year tranche at 80 basis points over US Treasuries and another $3 billion in 10-year notes at 100 bps over UST. The order books for the deal hit over $27 billion, reflecting the strong demand for the Kingdom’s issuances and confirming international investors’ confidence in the Saudi economy. This issuance is part of NDMC’s strategy to diversify funding sources and expand the investor base to meet the Kingdom’s financing needs from international debt capital markets efficiently and effectively. The latest issuance represents the Kingdom’s first dual-tranche sukuk issuance since 2017 and follows a successful $10 billion multi-tranche bond transaction executed in January 2023. The issuance was supported by several local and international banks and financial institutions, including Citigroup Global Markets Ltd., J.P. Morgan Securities Plc., Standard Chartered Bank, AlJazira Capital, BNP Paribas, and Goldman Sachs.

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