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Saudi Arabia: Debt Issuance Drops 17%, Sukuk 2049 Rises to $5.4 Bn

Saudi Arabia: Debt Issuance Drops 17%, Sukuk 2049 Rises to $5.4 Bn

Wednesday, 23 October, 2019 - 10:30

Government debt issuances by the Saudi Ministry of Finance under the Sukuk Program dropped 17.7 percent in October, compared to the issuance last September. Meanwhile, volume of Saudi issuances of bonds due in 2049 amounted to 20.6 percent $5.4 billion.

The Saudi Ministry of Finance has finished receiving investors' requests for its domestic issue for the month of October.

October’s issuances were divided into 4 segments, bringing the total amount of Sukuk for 2034 amounting to $2.5 billion,.

Meanwhile, Saudi Arabia has hired banks, including JPMorgan and Standard Chartered, to manage a $2.5 billion issuance of Sukuk, the kingdom’s first international debt transaction since attacks on its oil facilities last month.

The sale of the new Sukuk notes, due in 2029, will be completed on Tuesday, according to a document of one of the banks as seen by Reuters.

The notes offer an initial profit rate equivalent to 145-150 basis points over mid-swaps, knowing that Saudi Arabia has raised $3.3 billion in its first bond sale in that currency and $7.5 billion in conventional bonds in January.

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