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Saudi Arabia issues $9.6bn sukuk

Saudi sukuk Reuters/Faisal Al Nasser
The move was part of Saudi Arabia's efforts to strengthen the domestic debt market

Saudi Arabia has issued new local currency sukuk worth SAR35.9 billion ($9.57 billion) after completing the early purchase of some of its SAR35.7 billion existing sukuk, the National Debt Management Center (NDMC) said.

The sukuk redeemed early were set to mature in 2024, 2025 and 2026, state-run SPA reported, citing NDMC. 

The new issues were across four tranches of SAR7.5 billion maturing in 2031, SAR14.5 billion due in 2032, SAR10.8 billion maturing in 2033 and SAR3.2 billion due in 2038.

The move was part of its efforts to strengthen the domestic debt market and manage government debt obligations, as well as its future maturities.

HSBC Saudi Arabia, AlRajhi Capital, SNB Capital and AlJazira Capital were joint lead managers on the debt transaction.

In July, S&P Global expected total global sukuk issuances of between $160 billion and $170 billion for 2023, up from their initial estimate of $150 billion.

This increase is mainly due to the 9 percent growth in foreign currency issuances for the first half of 2023 compared with 2022, thanks mostly to Saudi Arabia.