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The Finance Ministry has closed its September sukuk issuance, raising SAR 2.6 bn from fixed-income investors, down from SAR 6 bn last month, Argaam reports, citing National Debt Management Center (NDMC) data. This is part of the government’s SAR-denominated sukuk program.
The issuance was structured in six tranches:
- A 3-year tranche valued at SAR 255 mn;
- A 5-year tranche valued at SAR 375 mn;
- A 7-year tranche valued at SAR 638 mn;
- A 10-year tranche valued at SAR 1 bn;
- A 12-year tranche valued at SAR 202 mn;
- A 15-year tranche valued at SAR 112 mn;
A snapshot of gov’t debt obligations in 2024: The total remaining debt maturities in 2024 stand at c. SAR 21 bn, down from SAR 40 bn on the back of NDMC’s “successful execution of liability management transaction in 2023,” according to the center’s annual borrowing plan report for 2024 (pdf). The government’s total debt portfolio is expected to reach SAR 1.1 tn by year-end.
The macro picture: The budget’s deficit for this year is projected to reach SAR 79 bn, putting our financing needs at around SAR 86 bn. Up to 35% of those needs will be financed through domestic SAR-denominated instruments, while up to 40% is expected to be raised in international markets, and up to 50% through the government alternative funding (GAF) channel. GAF aims at financing the government’s capex and infrastructure projects.
IN OTHER DEBT NEWS-
Sure Global Tech renewed a SAR 36.8 mn Shariah-compliant credit facility with Saudi National Bank, it said in a disclosure to Tadawul. The agreement secures funding for another seven months, and is backed by a SAR 40.5 mn promissory note. The renewed facility will fund ongoing and upcoming projects, bank guarantees, and letters of credit.
