The Debt Management Office of the Ministry of Finance announced the completion of the reception of investors' subscriptions for its second international issuance under the Saudi Government Sukuk Program in US Dollars as part of the Ministry of Finance's commitment to the development of the Shariah-compliant debt capital markets.
The ministry said the volume of issuance was set at a total amount of USD 2 billion for Sukuk maturing in January 2029. The issuance settlement is expected to be on or around September 19, 2018.
This issuance has seen a great deal of demand from international investors, with total orders amounting to more than USD 10 billion, reflecting the strength and robustness of the Saudi economy, which is a global investment power as it represents the region’s safe haven for fixed income investors.
The Debt Management Office of the Ministry of Finance established the International Sukuk Issuance Program in April 2017. As part of this program, the DMO has appointed a number of local and international investment banks to coordinate and arrange the issuance of international Sukuk denominated in US Dollars under this program.
*This announcement is not being made in and copies of it may not be distributed or sent into the United States, Canada, Australia or Japan. This press release does not constitute an offer in the Kingdom of Saudi Arabia or any other countries, of the securities mentioned above. The securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”). The Kingdom of Saudi Arabia does not intend to register any of the securities in the United States or to conduct a public offering of the securities in the United States. The securities will be offered in the United States to qualified institutional buyers pursuant to Rule 144A under the Securities Act and outside the United States pursuant to Regulation S under the Securities Act.