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The Finance Ministry closed its November sukuk issuance, raising SAR 3.4 bn from fixed-income investors, down from SAR 7.8 bn last month, according to a National Debt Management Center (NDMC) statement (pdf). This is part of the government’s SAR-denominated sukuk program.
The month saw yields on shorter tranches increase on a monthly basis, while yields for longer tranches remained relatively stable. The issuance was structured in five tranches:
- A 5-year tranche valued at SAR 2.5 bn with a 5% yield;
- A 7-year tranche valued at SAR 434 mn with a 5% yield;
- A 10-year tranche valued at SAR 137 mn with a 5.1% yield;
- A 12-year tranche valued at SAR 10 mn with a 5.1% yield;
- A 15-year tranche valued at SAR 310 mn with a 5.2% yield.
A snapshot of gov’t debt obligations in 2024: 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.” The government’s total debt portfolio is expected to reach SAR 1.1 tn by year-end, placing the debt-to-GDP ratio at 26.2%.
By the numbers: Trading volumes in Tadawul’s sukuk/bond market logged SAR 16 bn across 119 negotiated trades in 9M 2024, an Argaam survey reported last month. July emerged as the top-performing month, with transactions worth SAR 8.5 bn.
IN OTHER DEBT NEWS-
Zahrat Al Waha for Trading renewed a SAR 145 mn shariah-compliant loan with Arab National Bank, it said in a disclosure to Tadawul. The facility now runs until 31 October, 2025, and includes SAR 110 mn for raw material Letters of Credits and SAR 35 mn for capital expansions.
