The Finance Ministry closed its March sukuk issuance, raising SAR 2.64 bn from fixed-income investors, down from SAR 3 bn raised in February, according to a National Debt Management Center statement (pdf). This is part of the government’s SAR-denominated sukuk program.

March’s issuances shifted toward smaller tranches and slightly shorter maturities compared to February. Yields remained mostly steady across the board, with a slight uptick for longer-term debt.

The issuance was structured in four tranches:

  • A two-year tranche valued at SAR 364.2 mn with a 4.76% yield;
  • A four-year tranche valued at SAR 315.9 mn with a 4.82% yield;
  • A seven-year tranche valued at SAR 1.46 bn with a 4.85% yield;
  • A 14-year tranche valued at SAR 500 mn with a yield of 4.99%.

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. The government expects the budget shortfall to come in at 2.3% of GDP in the current fiscal year and to “continue at similar levels over the medium term.”

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