The National Debt Management Center (NDMC) announces the completion of arranging an international trust certificates issuance (Sukuk) in USD under the Kingdom's Global Trust Certificate Issuance Program (KSA Ijarah Sukuk), the Kingdom's first international issuance based on an Ijarah structure.
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.