Saudi Arabia eyes SAR 76 bln debt issuances in 2020: DMO President

The Saudi Debt Management Office (DMO) targets domestic and international debt issuances worth SAR 76 billion in 2020, Fahad Al-Saif, DMO’s President, told Argaam in an exclusive interview

“Debt issuances are expected to rise next year by SAR 120 billion, of which SAR 44 billion will be used to repay the 2015 principal domestic issuance. The remaining SAR 76 billion will finance the government’s budget,” Al-Saif said.

Saudi Arabia’s 2019 annual borrowing plan was based on a debt mix of 65% domestic debt and 35% external debt. However, that target may vary by ±10% due to market conditions and available liquidity.

To enter new markets, DMO mainly takes into account geographical distribution, type of investors and offering costs, Al-Saif noted, adding the Kingdom has entered the euro debt markets, thanks to the orders raised there, diversity of investors and the low cost of euro.

The euro debt market remains part of the DMO’s 2020 strategy, which will rely on market conditions and attracting new investors, the top official concluded.