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Saudi Arabia Seeks to Unify Local Issuances

Saudi Arabia Seeks to Unify Local Issuances

Wednesday, 29 July, 2020 - 10:45
General view of Riyadh city, Saudi Arabia, May 7, 2020. REUTERS/Ahmed Yosri
Riyadh - Asharq Al-Awsat

The Saudi Ministry of Finance announced on Tuesday the completion of an early redemption of a portion of outstanding bonds maturing in August, September, November and December of 2020, with a total value of 34.26 billion Saudi Riyal. In parallel, Saudi Arabia issued new sukuk under its local sukuk program, the ministry said in a statement.

The operation falls within the initiatives of the National Debt Management Center (NDMC) intended to unify the local issuances under the framework of the Local Sukuk Program.

The statement explained that the new sukuk issuances comprised four tranches with a total value of 34.645 billion riyals.

“The first tranche with an amount of SAR 8,970 million maturing in 2024, the second tranche with an amount of SAR 6,025 million maturing in 2028, the third tranche with an amount of SAR 6,500 million maturing in 2032 and the fourth tranche with an amount of SAR 13,150 million maturing in 2035,” it noted.

“Issuer [the ministry] has appointed HSBC Saudi Arabia and Samba Capital & Investment Management Company as Joint Placement Agents and Dealer Managers with respect of this project," it added.

The National Debt Management Center works to provide consulting services and proposes executive plans for government agencies and companies, in which the state owns more than 50 percent of their capital.

The center collects, processes and follows up on public and indirect public debt data, in addition to negotiating debt restructuring and managing investor relations in public debt instruments, credit rating and other related services.

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