Saudi raises SAR17bn in first domestic sukuk
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Saudi raises SAR17bn in first domestic sukuk

Saudi raises SAR17bn in first domestic sukuk

Saudi Arabia’s government auctioned sukuk with maturities of five, seven and 10 years

Gulf Business

Saudi Arabia has raised SAR17bn ($4.53bn) from investors for its riyal-denominated Islamic bonds, state news agency SPA reported on Tuesday.

Saudi Arabia’s government offered its first riyal-denominated Islamic bonds to investors on Sunday, auctioning sukuk with maturities of five, seven and 10 years, a document seen by Reuters showed.

The kingdom’s Ministry of Finance said on SPA it received more than SAR51bn ($13.6bn) worth of bids from investors, resulting in 300 per cent coverage ratio.

The first tranche, of SAR12bn, matures in 2022; the second tranche, of SAR2.9bn, matures in 2024; and the third tranche, of SAR2.1bn, matures in 2027, it said.

Riyadh is launching a domestic sukuk issuance programme to help cover a large budget deficit caused by low oil prices.

The Finance Ministry said last week that 13 domestic banks had qualified to participate in its domestic sukuk issues. Investors had to submit bids by Monday at 2 p.m. local time.


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