Riyadh (Wednesday 03/09/2022):

The National Debt Management Center (NDMC) announced the completion of an early redemption of a portion of the Issuer's outstanding bonds and sukuk maturing in 2023, 2024 and 2026 with a total value exceeded SAR 25 billion in addition to an issuance of new Sukuk under the Sukuk Issuance Programme in Saudi Riyal with a total value around SAR 26.2 billion (Twenty-six billion and two hundred million Saudi Riyals).

This transaction is one of the NDMC's initiatives to unify the Kingdom's domestic issuances under the Sukuk Issuance Programme in Saudi Riyal, that represents the third phase of this initiative which was started in 2020 and it will continue until unifying all domestic debt outstanding.

 This initiative is a continuation of NDMC's efforts to strengthen the domestic market and to carry on with the market developments which have been positively reflected on growing the trading volume in the secondary market. Further, this initiative enables NDMC to exercise its role in managing the government debt obligations and future maturities. This will also align NDMC's effort with other initiatives to enhance/optimize the public fiscal in the medium & long term.

NDMC divided the new Sukuk issuances into four tranches with a total value around SAR 26.2 billion. The first tranche amount is approx. SAR 2.6 billion maturing in 2027, the second amount is approx. SAR 1.9 billion maturing in 2029, the third tranche amount is approx. SAR 13.2 billion maturing in 2032 and the fourth tranche amount is approx. SAR 8.5 million maturing in 2037. It is worth mentioning that the Ministry of Finance (the Issuer) and NDMC has appointed HSBC Saudi Arabia, AlRajhi Capital and SNB Capital as Joint Lead Managers to lead the transaction.

*Numbers are rounded to the nearest decimal.​

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