The National Debt Management Center of the Saudi Ministry of Finance announced – in a statement today, Tuesday – the completion of the first offering in 2024 of international bonds in dollars, worth $12 billion, divided into 3 tranches.
The first tranche amounted to $3.25 billion for 6-year bonds maturing in 2030.
The second tranche amounted to $4 billion for 10-year bonds maturing in 2034. The third tranche amounted to $4.75 billion for 30-year bonds maturing in 2054.
The center stated in a statement that it has completed receiving investor requests for the first international issuance of bonds during the year 2024, within the Saudi government’s international bond program.
The total volume of subscription requests reached approximately $30 billion, with the coverage ratio exceeding two and a half times the total issuance, which amounted to $12 billion (equivalent to 45 billion riyals).
The center said that the bond issuance is part of its strategy to expand the investor base, for the purpose of meeting the Kingdom’s financing needs from global debt markets.
The direct debts owed by the Saudi government at the end of September 2023 amounted to about 994.3 billion riyals ($265.1 billion).
In mid-October, the Saudi Public Investment Fund appointed banks to arrange a bond sale, with the aim of issuing Islamic bonds (sukuk) denominated in dollars, and appointed Citi, HSB, JPMorgan and Standard Chartered banks.
The Public Investment Fund – with a size of $778 billion – is the chosen tool of Saudi Crown Prince Mohammed bin Salman to lead an economic agenda aimed at reducing dependence on oil.