NDMC successfully completed 2nd Early Repurchasing Transaction of KSA (Official Statement)

29 Oct 2021

Maaal Riyadh

The Kingdom of Saudi Arabia (KSA) represented by the Ministry of Finance (the issuer) announced the completion of an early repurchase of a portion of existing issuer’s bonds and Sukuk due in, September, October, November and December of next year (2022) with a total value of more than SR33 billion, in addition to an issuance of new Sukuk under the Sukuk Issuance Program, denominated in Saudi Riyal.

This transaction is one of the initiatives of the National Debt Management Center (NDMC) which aims to unify the issuer’s domestic issuances to be under the Sukuk Issuance Program, denominated in Saudi Riyal.

The step is the second stage of the initiative which started in 2020, and it will be followed by other stages leading to the unification of all local issuances enabling Sukukholders to benefit from zakat recovery applicable to the Sukuk Issuance, denominated in Saudi Riyal.

اقرأ المزيد

This initiative is a continuation of NDMC’s efforts to strengthen the domestic market, and to keep up with market developments which is reflected in the increase of trading volume in the secondary market.

It is also an enhancement to NDMC’s role in managing government debt obligations and future maturities and to the integration between NDMC and other initiatives to optimize public finance in the medium and short term, and ensuring the Kingdom’s access to debt markets at a fair price.

NDMC divided the new Sukuk issuances into four tranches with a total value of SR33.48 billion. The first tranche was at a value of SR11.12 billion maturing in 2029, the second tranche was at a value of SR6.30 billion and shall mature in 2031, while the third tranche was at a value of SR11.40 billion and shall mature in 2033, and the fourth tranche was at a value of SR4.66 million and shall come due in 2036.

The Ministry of Finance and NDMC have appointed HSBC Saudi Arabia, SNB Capital, and ARB Capital jointly to be the primary dealer managers, and Aljazira Capital and Alinma Investment as secondary dealer managers.