Saudi Arabia: Requests for international bonds in 2024 completed

The Saudi National Debt Management Center (NDMC) announced Tuesday it stopped receiving investors’ requests for the first international issuance of bonds under the Kingdom’s Global Medium-Term Note Issuance Programme (GMTN) during the year 2024.

The total order book reached around $30 billion, which equals an oversubscription of 2.5 times. The Kingdom issued a total of $12 billion (equivalent to SAR45 billion) via a triple-tranche bond offering, according to Saudi Press Agency (SPA).

The value of the first tranche is $3.25 billion (equivalent to SAR12.19 billion) for a 6-year bond maturing in 2030. The second tranche totaled $4 billion (equivalent to SAR15 billion) for a 10-year bond maturing in 2034, and the third totaled $4.75 billion (equivalent to SAR17.81 billion) for a 30-year bond maturing in 2054.

This step is part of NDMC’s strategy to diversify the investor base and meet the Kingdom’s financing needs from international debt capital markets efficiently and effectively.

The bid-to-cover ratio reflects the strong demand for the Kingdom’s issuances, confirming investors’ confidence in the strength of the Saudi economy and its future investment opportunities. (QNA)