The Clap
The Saudi Stock Exchange (Tadawul) has decided to allow the listing of government debt instruments with a total value of approximately SAR 5.2 billion.
What
The decision comes following the approval by Tadawul of the request submitted by the Ministry of Finance to list government-issued debt instruments. These instruments have been divided into two issuances as follows:
- Issuance No. 10-01-2024, with a total value of SAR 2.82 billion
- Issuance No. 15-01-2024, amounting to approximately SAR 2.35 billion
They are scheduled to be listed and traded starting from January 22nd of this year.
So What
The National Debt Management Center revealed that Saudi Arabia has raised approximately 8.8 billion riyals from the January issuance of local Sukuk as part of its program in Saudi Riyals. The issuance was divided into three tranches with maturities in 2029, 2034, and 2039.
Some Context
The Kingdom’s annual borrowing plan anticipates that the financing needs for the current year will be approximately SAR 86 billion. This includes settling the principal debt obligations for the year and covering the expected deficit in this year’s budget.
It is also expected that the total debt portfolio will reach around SAR 1.1 trillion by the end of 2024, according to the Ministry of Finance.
