The Finance Ministry closed its February sukuk issuance, raising SAR 3.07 bn from fixed-income investors, down from SAR 3.7 bn raised in January, according to a National Debt Management Center statement (pdf). This is part of the government’s SAR-denominated sukuk program.

February’s issuance was structured in four tranches:

  • A four-year tranche valued at SAR 585.4 mn with a 5.0% yield;
  • A seven-year tranche valued at SAR 1.7 bn with a 5.11% yield;
  • An 11-year tranche valued at SAR 403.9 mn with a 5.21% yield;
  • A 14-year tranche valued at SAR 375.6 mn with a yield of 5.29%.

IN CONTEXT- The Kingdom’s borrowing plan for FY 2025 outlined a requirement for some SAR 139 bn in new public debt. The targeted amount is intended to bridge an anticipated SAR 101 bn budget deficit penciled in for the new fiscal year, in addition to covering some SAR 38 bn required to meet principals’ repayments for loans maturing during the period.

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