Saudi Arabia has completed a major sukuk restructuring and new issuance worth over SR120 billion ($32 billion) to enhance fiscal sustainability and deepen its domestic debt market, the National Debt Management Center (NDMC) announced.
The initiative involved the early redemption of SR60.4 billion in sukuk maturing between 2025 and 2029. To refinance, the NDMC issued SR60.3 billion in new sukuk across five tranches, with maturities ranging from 2032 to 2040.
The move supports Vision 2030 objectives, aiming to diversify the economy, strengthen fiscal buffers, and boost the local capital market.
The new sukuk were structured as follows:
- SR21.5B maturing in 2032
- SR1.8B in 2035
- SR14.2B in 2036
- SR5.9B in 2039
- SR16.9B in 2040
The NDMC highlighted that the transaction aligns with broader fiscal optimization goals and enhances the government’s ability to manage debt maturities.
To lead the transaction, HSBC Saudi Arabia, SNB Capital, Al Rajhi Capital, AlJazira Capital, and Alinma Investment were appointed as joint lead managers.
Saudi Arabia’s cost of debt stands at just 3.6%, one of the lowest among emerging markets, thanks to a diversified financing strategy and prudent risk management.
This action aligns with the Financial Sector Development Program under Vision 2030, which targets increasing:
- Banking sector assets to SR3.5 trillion by 2025
- Market cap to 80.8% of GDP
- Debt instruments to 24.1% of GDP
- SME loan share to 11%
Non-cash transactions to 70%