By Elias Al Helou
Share

Saudi Arabia completes $12 bn bond issuance across three tranches

Total value of underwriting applications reached approximately $30 bn
Saudi Arabia completes $12 bn bond issuance across three tranches
Saudi Arabia makes first 2024 issuance of U.S. dollar international bonds

The National Debt Management Center (NDMC) of Saudi Arabia has announced the successful completion of investor applications for the first international bond issuance of 2024 under the Kingdom’s bonds program.

As per the Center’s statement, the total value of underwriting applications reached approximately $30 billion, surpassing the total issuance of $12 billion (equivalent to SAR45 billion) by more than two and a half times. The issuance was divided into three segments: the first tranche consisted of 6-year bonds worth $3.25 billion (equivalent to SAR12.19 billion) maturing in 2030, the second tranche comprised 10-year bonds worth $4 billion (equivalent to SAR15 billion) maturing in 2034, and the third tranche included 30-year bonds worth $4.75 billion (equivalent to SAR17.81 billion) maturing in 2054.

Read more: Saudi sukuk and bonds jump by 5.7 percent this year

This move is part of NDMC’s strategy to broaden the investor base and efficiently meet the Kingdom’s financing requirements through global debt markets. Also, the strong demand from international investors for government debt instruments reflects their trust in the resilience of the Saudi economy and future investment opportunities.

Bloomberg reports that the Kingdom is following the footsteps of countries like Mexico, Indonesia, and Poland, which have issued nearly $25 billion in bonds since the start of 2024. Additionally, this marks the busiest beginning of a year ever in terms of developing countries issuing debt denominated in dollars and euros.

The transaction is being managed by prominent banks, including Citigroup, JP Morgan Chase, HSBC Holdings, and Standard Chartered.

In 2023, the Kingdom was one of the largest debt exporters in emerging markets, with bond sales amounting to $16 billion.

For more news on markets, click here.

Related Topics:
Disclaimer: The content of this article is intended for informational purposes only.It does not constitute advice on tax and legal matters; neither are they financial or investment recommendations. Refer to our full disclaimer policy here.