The NDMC was awarded the “Best Debt Capital Markets Deal of the Year 2021" and the “Middle East Sovereign Funding Team of the Year 2020" awards at the Saudi Capital Markets Conference.
The “Best Debt Capital Markets Deal of the Year 2021" award comes after the NDMC's arranged the issuance of EUR denominated bond amounting to EUR 1.5 bn to become the largest negative yield issuance ever executed outside the EU with 3.3 times coverage ratio, equivalent to EUR 5 bn.
This issuance was divided into two tranches: the first tranche of 1 billion EUR for 3-years maturing in 2024 with a negative return of -0.06%, and half a billion EUR for 9-years maturing in 2030 with a return of less than 1%.
NDMC's achievement as the best Sovereign Funding Team in the Middle East displays its role in broadening the investor base, opening communication channels with the investors internationally, and securing the Kingdom's financial needs in the short, medium and long term at fair costs and risk levels that comply with the Kingdom's fiscal policy by ensuring sustainable access to all funding channels.
The award demonstrates the efforts of the Kingdom in developing the Saudi Debt Market and expected to promote and enhance the demand for Saudi Sukuk and Bonds issuances.
This initiative is a continuation of NDMC's efforts to strengthen the domestic market and to carry on with the market developments which have been positively reflected on growing the trading volume in the secondary market. Further, this initiative enables NDMC to exercise its role in managing the government debt obligations and future maturities. This will also align NDMC's effort with other initiatives to enhance/optimize the public fiscal in the medium & long term.NDMC divided the new Sukuk issuances into four tranches with a total value around SAR 26.2 billion. The first tranche amount is approx. SAR 2.6 billion maturing in 2027, the second amount is approx. SAR 1.9 billion maturing in 2029, the third tranche amount is approx. SAR 13.2 billion maturing in 2032 and the fourth tranche amount is approx. SAR 8.5 billion maturing in 2037. It is worth mentioning that the Ministry of Finance (the Issuer) and NDMC has appointed HSBC Saudi Arabia, AlRajhi Capital and SNB Capital as Joint Lead Managers to lead the transaction.
*Numbers are rounded to the nearest decimal.