The National Debt Management Center (NDMC) raised USD 5 bn with the sale of USD-denominated sukuk in an offering that was 4x oversubscribed, it said in a statement. The offering is part of the Kingdom’s Global Trust Certificate Issuance Program and is the “first triple tranche sukuk issuance that is a part of NDMC's strategy to diversify the Kingdom's funding sources and expand the investor base.”

The details: The triple-tranche offering included a three-year tranche worth USD 1.25 bn, a six-year tranche worth USD 1.5 bn, and a 10-year tranche worth USD 2.25 bn. This marks the seventh offering under the Global Trust Certificate Issuance Program and the first since the USD 6 mn issuance in May 2023. This is different from the Global Medium Term Note Issuance Program which offers debt securities in the format of USD bonds.

The program aims to “ensure the Kingdom's continuous presence in debt markets and manage the debt repayments for the coming years while taking into account market movements and the government debt portfolio risk management,” NDMC said. Officials at multiple levels of government and the PIF have repeatedly said in recent months that they don’t want to crowd private business out of the domestic debt market.

ADVISORS- Citi, Goldman Sachs and BNP Paribas are joint bookrunners and global coordinators for the sale, while Aljazira Capital, JPMorgan, and Standard Chartered were appointed passive joint bookrunners.

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