The agreements' ceremonies were attended by H.E Abdulaziz AlFuraih, Chairman of the Steering Committee at the Ministry of Finance, and the CEO of the National Debt Management Center, Hani Almedaini, in addition to the representatives of the financial institutions, confirming the role of the National Debt Management Center in enhancing access to local debt markets through diversifying investors base to ensure sustainable access to the secondary market and to support its development.
On this occasion, H.E the Minister of Finance noted that these agreements are a continuation of the developmental steps taken towards achieving Vision 2030 objectives under the umbrella of the Financial Sector Development Program. This is primarily achieved through cooperation between relevant entities to develop the infrastructure of the local debt market and increase the liquidity of the government's local debt instruments by attracting more capital from foreign investors. This is in addition to enabling primary dealers and market participants to play their roles in providing appropriate tools.It is noteworthy that applications for subscription in the primary market for the government's local debt instruments are submitted to the National Debt Management Center through the appointed primary dealers on a scheduled monthly basis where these dealers receive the applications submitted by investors.KSA Ijara Sukuk Limited, issued a total of USD 5.5 billion (equivalent to SAR 20.63 billion) Trust Certificates, divided into two tranches. The value of the first tranche was USD 2.25 billion (equivalent to SAR 8.44 billion) for a 5 -year Sukuk maturing in 2030. The second tranche totaled USD (3.25) billion (equivalent to SAR 12.19 billion) for a 10 -year Sukuk maturing in 2035. While the order book reached around USD 19 billion, which resulted in the subscription exceeding the total issuance by 3.5 times.
This transaction is part of NDMC's strategy to diversify the investors' base to meet the Kingdom's financing needs from international debt capital markets efficiently and effectively. The level of investor demand for the Kingdom's issuances reflects their confidence in the strength of the Kingdom's economy and the outlook for future investment opportunities with it.
A number of local and international banks and financial institutions contributed to this issuance. Citigroup, HSBC, JP Morgan, and Standard Chartered acted as Joint Global Coordinators and Active bookrunners on this transaction, ICBC and Mizuho as active Joint lead managers, while Abu Dhabi Islamic Bank, Dubai Islamic Bank and AL Jazira Capital acted as Passive Joint lead managers.