Thank you for reading the news about S&P elevates Tawuniya’s credit rating to ‘A’ with ‘Stable’ outlook and now with the details
Jeddah - Yasmine El Tohamy - RIYADH: Saudi Arabia’s National Debt Management Center concluded its riyal-denominated sukuk issuance for December at SR10.53 billion ($2.81 billion), marking an increase of 295 percent compared to the previous month.
In November, Saudi Arabia’s sukuk issuance amounted to SR2.66 billion, while in October, it was SR3.98 billion.
The offerings in December, with total bids received reaching SR14.12 billion, were divided into two tranches, according to a statement by the NDMC.
The first tranche, valued at SR2.57 billion, is set to mature in 2030, and the second allotment, valued at SR7.97 billion, is due in 2035.
Sukuk, which is also called an Islamic bond, is a Shariah-compliant debt product.
“This issuance confirms the NDMC’s statement on the mid of February 2023, that NDMC will continue, in accordance with the approved Annual Borrowing Plan, to consider additional funding activities subject to market conditions and through available funding channels locally or internationally,” the center stated in the statement.
NDMC added: “This is 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.”
Earlier this month, NDMC had secured a syndicated loan of SR41.26 billion as part of the government’s medium-term debt strategy, aimed at diversifying the Kingdom’s funding sources.
Structured for a 10-year term, the funding involved the collaboration of 14 international financial institutions spanning Asia, the Middle East, Europe, and the US.
Despite predictions by rating agencies like Moody’s Investors Service anticipating a decline in global sukuk issuances in 2023, Saudi Arabia’s consistent issuances reflect its commitment to managing financial needs effectively.
In August, Moody’s had estimated a decline to range between $150 billion and $160 billion in 2023, down from $178 billion in 2022.
In the same month, Saudi Central Bank Governor Ayman Al-Sayari said the Kingdom is the largest sovereign issuer of Islamic bonds in the world.
He also added that Saudi Arabia is the most prominent Islamic finance market in the world, with total assets exceeding SR3.1 trillion.
Al-Sayari further noted that the total value of the Islamic finance sector stood at SR11.2 trillion by August 2023, representing an average growth of 9.6 percent over the last three years.
These were the details of the news S&P elevates Tawuniya’s credit rating to ‘A’ with ‘Stable’ outlook for this day. We hope that we have succeeded by giving you the full details and information. To follow all our news, you can subscribe to the alerts system or to one of our different systems to provide you with all that is new.
It is also worth noting that the original news has been published and is available at Arab News and the editorial team at AlKhaleej Today has confirmed it and it has been modified, and it may have been completely transferred or quoted from it and you can read and follow this news from its main source.
