CMA directs debt issuers to deposit privately-placed debt instruments with Edaa as of Oct. 1

The Capital Market Authority (CMA) issued a resolution directing issuers of SAR-denominated privately placed debt instruments, offered in accordance with the Capital Market Law and its regulations, including Saudi joint stock companies and affiliate special purposes entities, to deposit local issuances with the Securities Depository Center Company (Edaa). 

This will take effect as of Oct. 1, 2021, provided that the privately placed debt instruments should be deposited within ten days maximum from the offering completion. The complete debt issuance programs will be deposited by Oct. 1, 2021 maximum. 

The CMA directed issuers of Saudi riyal-denominated privately placed debt instruments by Saudi joint stock companies and affiliate special purposes entities, to disclose local issuances with Edaa, starting from Oct. 1. The disclosure of privately placed debt instruments shall take place within ten days maximum from the completion of the offering or the completion of each issue if the offering is a debt issuance, or by Oct. 1 maximum for complete issuances prior to the aforementioned effective date. 

Furthermore, the CMA board also waived the fees collected by Edaa on behalf of issuers of privately placed debt instruments, whose volume of issuances stand at a maximum of SAR 500 million, for a maximum of two issuances per issuer. Additionally, the CMA waived the fees collected by Edaa and the Saudi Exchange (Tadawul) on behalf of issuers of listed debt instruments for a maximum of two issuances per issuer, for a period of five years.