NCDA Annual Borrowing Plan for 2021, Completed

National Center for Debt Management (NCDM) Mohammad Al-Jadaan, the Minister of Finance and its chairman announced the completion of the implementation of the annual borrowing plan proposed by the center for the Year 2021, with a financing volume of approximately SR125 billion, as a part of the public debt strategy adopted to meet the needs of public finance, and seize opportunities available, in the local and global markets and risk management.

On the other hand, the board have approved the proposal of the annual borrowing plan, at the beginning of the year, included meeting financial needs by issuing debt instruments of about SR125 billion, including sukuk and bonds, most of which were fixed-return instruments to overcome the risks of potential interest rate fluctuations, the minister added, indicating that the center succeeded in arranging the issuance of sovereign bonds worth 1.5billion euros, with the largest negative return segment ever outside the European Union, where the total issuance amounted to the equivalent of 6.8 billion and a coverage ratio of 3.3 times (approximately 5 billion euros) of the total issuance.

That confirms the leading position of the center, in addition to a coordinated and arranged financing provided by the Korean Commercial Insurance Company (KSURE) at a value of $3 billion, equivalent to SR11.3 billion, at the beginning of this year.

 On the other hand, the center completed arrangement of the second early purchase of part of the bonds and sukuks, due during the next Year 2022, with a value of more than 3SR3 billion.

Al-Jadaan added that the total domestic financing amounted to 60.5%, while the international financing amounted to 39.5% of the total annual borrowing plan for the year 2021, adding that a number of financing channels were created, including alternative government financing, and early purchases of local government issuances.

As well as the start of work on the green financing framework, within the new initiatives and financing channels that the Ministry of Finance and the Center are working to launch during the next year, concluding by referring to credit rating agencies doings to modify their ratings and future outlook of the Kingdom to a stable outlook, which confirms the efficiency and ability of the Saudi public financial system to overcome challenges, foresee the future and develop plans to deal with risks.

For his part, CEO of the National Center for Debt Management Hani Al-Madini stated that the center is working to expand the base of investors, open channels of communication with them, locally and internationally, reach new geographic areas, work on adding international financial institutions to the primary dealers program, and attract capital to take advantage of the available opportunities, via debt instruments to be issued, and seize the opportunities available, in the local and international market.