Saudi Arabia secures $1.17 billion from Sukuk issuance in June.

RIYADH — The National Debt Management Center (NCMC) has announced the successful completion of investor requests for the June 2024 local issuance under the Saudi government's sukuk program, denominated in Saudi riyals. The total allocation for this issuance amounted to SR4.414 billion.

According to a statement from the Center, the issuance was divided into three tranches. The first tranche, valued at SR1.6 billion, will mature in 2027. The second tranche, worth SR53 million, will mature in 2031, while the third tranche, totaling SR2.761 billion, will mature in 2034.

At the end of May 2024, the Center also completed an early buyback of a portion of the issuer's outstanding debts due in 2024, 2025, and 2026, with a total value exceeding SR63.1 billion. Additionally, new sukuk issuances totaling approximately SR64.1 billion were made, divided into three tranches.

Saudi Arabia has plans to increase its funding activities in 2024, targeting up to SR138 billion as outlined in the Annual Borrowing Plan. A portion of this amount has already been covered to date.

This initiative is part of a strategy to capitalize on favorable market conditions to secure proactive financing for the upcoming year. The funding will also be used to strengthen the state's general reserves or pursue opportunities that enhance transformative spending, accelerating the strategic projects and programs of Saudi Vision 2030.