The Kingdom of Saudi Arabia, acting through the Ministry of Finance (the "Issuer") announces the completion of an early redemption of a portion of the Issuer’s outstanding bonds maturing in August, September, November and December of this year 2020G with a total value of thirty-four billion two hundred and sixty million Saudi Riyal. At the same time, the Issuer has, at the request of selling bondholders, issued new sukuk under its local sukuk programme. 

This exercise is one of the initiatives of the National Debt Management Center (“NDMC”) intended to unify the local issuances of the Issuer under the framework of the Local Sukuk Programme of the Issuer in the Kingdom of Saudi Arabia.

This step constitutes the first phase of the said initiative, with further phases to follow until complete unification of local issuances is achieved.  The NDMC initiative is a continuation of the measures taken to strengthen the local market, which reflects the latest market developments, such as a high trading vloume in the secondary market and allowing all Sukuk holders to benefit from the Zakat redemption applied within the framework of the local Sukuk program.

The new sukuk issuances comprise four tranches with a total value of Thirty-four billion six hundred and forty-five million Saudi Riyals. The first tranche with an amount of SAR 8,970 million maturing in 2024, the second tranche with an amount of SAR 6,025 million maturing in 2028, the third tranche with an amount of SAR 6,500 million maturing in 2032 and the fourth tranche with an amount of SAR 13,150 million maturing in 2035.

The Issuer has appointed HSBC Saudi Arabia and Samba Capital & Investment Management Company as Joint Placement Agents and Dealer Managers with respect of this project