Skip to content Skip to Search
Skip navigation

Saudi’s latest sukuk issuance gets $17bn worth of orders

By Pramod Kumar
REUTERS
The 14 banks have been banned from undertaking dollar transactions but can continue to use Iraqi dinars and other foreign currencies

Saudi Arabia has launched a dollar-denominated sukuk with tenors of six and 10 years for the second time this year.

The Arab world’s largest economy drew over $17 billion in demand for the issue, Reuters reported, citing a bank document.

The initial guidance for the six and 10-year sukuk was at 110 basis points (bps) and 135 bps over US Treasuries.

Citi, JPMorgan and Standard Chartered are global coordinators, in addition to Aljazira Capital, BNP Paribas and Goldman Sachs.

“Probably taking advantage of the market and front loading in case there is more pressure on the oil price,” Reuters reported, citing Monica Malik, chief economist at Abu Dhabi Commercial Bank.

Saudi Arabia will trim oil production by 500,000 barrels per day (bpd) from this month, as part of a 1.16 million bpd cut previously announced by Opec+.

In January, Riyadh tapped the debt market, raising $10 billion with three-tranche conventional bonds.

In September 2022, Refinitiv’s 2022 sukuk survey said sukuk issuance was still projected to grow at an estimated compound annual growth rate of 6.8 percent over the next five years, reaching $257 billion in 2027.

Latest articles

The UAE has approved its largest-ever national budget for the fiscal year 2025, with spending set to hit AED 71.5 billion

UAE announces largest-ever budget for 2025

The UAE has approved its largest-ever national budget for the fiscal year 2025, with spending set to hit AED71.5 billion ($19.5 billion), after capital expenditure increased by nearly half in the early part of this year. The government expects to match the 2025 expenditure with AED71.5 billion in revenues over the same period. Social Development […]

chicken exports

Gulf’s taste for chicken boosts Brazilian exports

Saudi Arabia and the UAE has helped Brazil record the second-highest volume of chicken meat exports in a single month. Shipments of chicken from Brazil in September increased 17.6 percent to the United Arab Emirates and 5.9 percent to Saudi Arabia. Brazil, the world’s largest supplier of chicken meat, exported 485,000 tonnes in total last […]

Saudi-backed US luxury electric vehicle maker Lucid exceeded market expectations in Q3, delivering 24 percent more cars than forecast

Lucid beats latest delivery expectations

Saudi-backed US luxury electric vehicle maker Lucid has exceeded market expectations for its third quarter, delivering 24 percent more cars than had been forecast.  Analysts cited discounts and more favourable finance options as reasons for the sharp increase.  Lucid delivered 2,781 vehicles in Q3, ahead of estimates of 2,242, according to analysts polled by Visible […]

BP Iraq Kuwait

BP seeking new investments in Iraq and Kuwait

BP is in talks for new investments in Iraq and Kuwait as the company refocuses on oil and gas. The British energy giant is in discussions to invest in three new projects in Iraq, including one in the Majnoon field near Basra, sources have told Reuters. In August BP signed an agreement with the Iraqi […]