The National Debt Management Center (NDMC) has announced the completion of an early purchase of a portion of the kingdom’s outstanding debt instruments maturing in 2024, 2025 and 2026 with a total value of SAR35.7 billion ($9.52 billion).

 

This represents the largest early purchase transaction arranged by the NDMC, in addition to an issuance of new Sukuk under the Local Saudi Sukuk Issuance Program in Saudi Riyal with a total value around SAR35.9 billion, a Saudi Press Agency report said.

 

This initiative is a continuation of the NDMC's efforts to strengthen the domestic market and to keep up with market developments which have been reflected positively on the growing trading volume in the secondary market, it said.

 

Further, this initiative enables the NDMC to exercise its role in managing the government debt obligations and its future maturities. This will also align the NDMC’s efforts with other initiatives to enhance the public finance in the medium and long term.

 

The NDMC divided the new Sukuk issuances into four tranches with a total value around SAR35.9 billion. The first tranche amount is approximately SAR7.5 billion maturing in 2031, the second tranche amount is SAR14.5 billion maturing in 2032, the third tranche is SAR10.8 billion maturing in 2033, and the fourth tranche is SAR3.2 billion maturing in 2038.

 

HSBC Saudi Arabia, AlRajhi Capital, SNB Capital, and AlJazira Capital were appointed as Joint Lead Managers to lead the transaction.