Today, Monday, a document showed that the Kingdom of Saudi Arabia entered the international debt markets again, aiming to sell sukuk in two tranches.
The document revealed, according to Reuters, that the Kingdom intends to offer sukuk in dollars with maturities of 6 and 10 years.
The Kingdom set an initial guiding price at 110 points above US Treasury bonds for 6-year sukuk, and at 135 basis points for 10-year sukuk.
According to the document, Saudi Arabia appointed Citi, JPMorgan and Standard Chartered banks as global coordinators for the issuance.
It is noteworthy that Saudi Arabia opened the year 2023 with the issuance of international bonds worth $10 billion; Within the International Government Bonds Program of the Kingdom of Saudi Arabia.
The total volume of subscription requests amounted to about $38 billion, with the coverage ratio exceeding 3.8 times the total issuance, which amounted to $10 billion (equivalent to 37.5 billion riyals) divided into three tranches.
The first tranche amounted to $3.25 billion (12.19 billion riyals) for 5-year bonds due in January 2028, while the second tranche amounted to $3.5 billion (13.13 billion riyals) for 10.5-year bonds due in July 2033. The third tranche amounted to $3.25 billion (equivalent to 12.19 billion riyals) for 30-year bonds due in January 2053.
On January 25, the Saudi Minister of Finance, Muhammad bin Abdullah Al-Jadaan, approved the annual borrowing plan for the year 2023 AD; This was after it was approved by the Board of Directors of the National Center for Debt Management.
The plan included expectations that the financing needs for the year 2023 would be approximately 45 billion riyals. Due to the reduction of part of the total financing needs for the year 2023 AD through proactive financing operations that took place during the year 2022 AD by approximately 48 billion riyals.
And the National Center for Debt Management revealed, according to the annual borrowing plan report, that debts of about 108 billion Saudi riyals are due in 2023, both from domestic and international debts.
In 2022, the center succeeded in completing two local and international early purchase operations. To pay part of the dues of the principal debt in the year 2023 AD, at a value of 15 billion riyals, and to issue local sukuk and international bonds in return for it; This led to a decrease in the total debt dues for the year 2023 AD to about 93 billion riyals.
