Local companies continued to tap the debt market, with two listed companies announcing fresh SAR-denominated sukuk.

#1- Tadawul-listed SAL Saudi Logistics is out with a fresh SAR-denominated sukuk issuance, offered through a private placement that has a minimum subscription value of SAR 1 mn, it said in a disclosure to the bourse. The company appointed JPMorgan Saudi Arabia and SNB Capital to manage the offering, which wraps up on 29 January.

#2- Nomu-listed Waja also kicked off the issuance of SAR-denominated sukuk, with the first tranche offered in two issuances with a total value of SAR 2.5 mn and at a minimum subscription value of SAR 1k, according to a disclosure to the bourse.

The big picture: Bond sales in the MENA region are off to a strong start to the year, with 14 borrowers raising almost USD 30 bn in international markets in just the first week — more than the region raised in the whole of January last year, International Financing Review (IFR) reports. Investors had plenty to choose from last week, with offerings from Saudi Arabia, the UAE, Kuwait, and Israel across government, bank, and corporate bonds. Many were keen on higher-yielding, lower-ranking bonds as tight pricing on top-quality debt pushed them to look for better returns.

This rush to debt markets is driven by the fact that “funding needs are elevated given lower oil prices as well as sustained growth in the non-energy sector, which is creating strong demand and profitable opportunities for borrowers,” Azimut Senior Portfolio Manager Faisal Ali is quoted as saying. Issuance is expected to rise by 25%–30% this year compared with last year’s record USD 172 bn, according to LSEG data cited by IFR.

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