Strong demand for first international Saudi Sukuk

 13 Apr 2017 - 14:27

Strong demand for first international Saudi Sukuk

QNA

Riyadh: The Saudi Ministry of Finance received significant interest for the first international issue of the Sukuk program with an order book from investors in excess of $33 billion (equivalent to SAR 123.75 billion).

This reflects the strong fundamentals of the Saudi economy and illustrates the role of the Debt Management Office 'DMO" at the ministry as part of the Kingdom's Vision 2030. 

The total amount of the issue has been sized at $9 billion (equivalent to SAR 33.75 billion), according to Saudi Press Agency (SPA).

This consists of two tranches of certificates, $4.5 billion (equivalent to SAR 16.875 billion) certificates maturing in 2022 and $4.5 billion (equivalent to SAR 16.875 billion) certificates maturing in 2027.

The Debt Management Office was established in the fourth quarter of 2015 to secure Saudi's financing needs with best financing costs in the short, medium, and long term under acceptable degree of risk in compliance with the financial policies and to maintain the kingdom's ability to access different international financial markets at fair pricing.

Saudi Arabia has raised $17.5 billion in the biggest ever bond sale from an emerging-market. (QNA)