RIYADH: Saudi Arabia completed a riyal-denominated sukuk issuance in July of SR3.21 billion ($855.7 million), according to the National Debt Management Center.
The level again remained above SR3 billion, after the issuance in June of SR4.4 billion, SR3.23 billion in May, SR7.39 billion in April, and SR4.4 billion in March.
NDMC announced that its Shariah-compliant debt products in July were divided into five segments.
The first tranche is worth SR612 million and is scheduled to mature in 2029, while the second is worth SR159 million maturing in 2031.
The third tranche is worth SR961 million, maturing in 2034, and the fourth is a SR1.25 million tranche with a maturity date of 2036.
The fifth tranche has a size of SR226 million with a maturity of 2039.
This is part of the Government's Sukuk Issuance Program, which began in 2017, with the aim of establishing an unlimited sukuk activity in riyals through the NDMC.
The announcement from the NDMC came as Kuwait's financial center Markaz released its own figures for bond and sukuk issuance across the Gulf Cooperation Council region in the first half of 2024. .
The survey showed that Saudi Arabia was the leading player in the six months to the end of June, collecting 37 billion dollars from 44 releases.
A report published by S&P Global in April said that global sukuk issuance is expected to hover between the $160 billion and $170 billion mark in 2024, holding steady compared to $168.4 billion seen in 2023 and $179.4 billion in 2022.
According to the company in the United States, the issuance of this Shariah-compliant debt product began in 2024, and Saudi Arabia has become a major participant in the show.
The rating agency also noted that the sukuk market will grow in the short term driven by financing needs in core Islamic finance countries, along with regulatory reform programs. economies that are currently operating in countries such as Saudi Arabia.
He added: “The decline in issuance volume in 2023, which was the result of stricter conditions in the Saudi Arabian banking system and lower financial losses in Indonesia, was offset by an increase in sukuk issuance.” in foreign currency.”
In April, another report published by Fitch Ratings echoed the same sentiment and noted that global sukuk issuance is expected to continue to grow in the coming months of this year.
Fitch noted that economic development efforts and the rapid development of debt capital markets in the Gulf Cooperation Council region will drive the growth of the sukuk market in the month. to come
