NDMC arranges Saudi Arabia’s third early repurchase deal worth over SAR 25 bln

Logo of National Debt Management Center

The National Debt Management Center (NDMC) completed an early redemption of a portion of the issuer's outstanding bonds and sukuk maturing in 2023, 2024 and 2026 with a total value of more than SAR 25 billion, in addition to an issuance of new Sukuk under the Sukuk Issuance Program in Saudi Riyal at a total value around SAR 26.2 billion.

This transaction is one of the NDMC's initiatives to unify the Kingdom's domestic issuances under the domestic sukuk issuance program, that represents the third phase of this initiative which was started in 2020, which will continue until unifying all domestic debt outstanding, NDMC said in a statement.

This initiative extends 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. It also enables NDMC to exercise its role in managing the government debt obligations and future maturities. The initiative will also align NDMC's effort with other initiatives to enhance the public fiscal in the medium and long term.

NDMC divided the new sukuk issuances into four tranches worth around SAR 26.2 billion. The first tranche is valued at nearly SAR 2.6 billion maturing in 2027; the second is valued at almost SAR 1.9 billion maturing in 2029; the third is worth SAR 13.2 billion maturing in 2032 and the fourth is valued at about SAR 8.5 million maturing in 2037.

The Ministry of Finance (the Issuer) and NDMC has appointed HSBC Saudi Arabia, Al Rajhi Capital and SNB Capital as Joint Lead Managers to lead the transaction.