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Saudi Arabia plans to issue USD 54 bln-worth bonds, Sukuk

Saudi Arabia, April 2, 2018

The Saudi government is planning to issue bonds and Sukuk at the Saudi Stock Exchange (Tadawul) at a total value of SR 204.385 billion (approx. USD 54.5 billion).
The Capital Market Authority has approved the listing and trading in government bonds and Sukuk at Tadawul as of next Sunday, April 8, the Saudi Finance Ministry said in a press statement Sunday.
It stated that 45 bonds and Sukuk issuances valued at SR 204.385 billion (approx. USD 54.5 billion) would be listed, including Government Development Bonds accounting for SR 77.720 billion (roughly USD 20.72 billion), Floating Rate Notes worth SR 68.210 billion (USD 18.18 billion) and Government Sukuk at a value of SR 58.455 billion (approx. USD 15.58 billion).
The period of issuance varies for each of the government debt instruments. Maturities of the instruments to be listed vary between six, seven and 10 years, the ministry clarified.
'The listing of government debt instruments is an important step towards increasing transparency under a supervisory framework that provides disclosure to investors,' Saudi Minister of Finance Mohammed Al-Jadaan said.
'It also contributes to ensuring the fair pricing of debt instruments listed on the secondary market through a strong interaction between supply and demand and linking market values with performance.' Al-Jadaan said that this step was preceded by the registration of debt instruments at the Securities Depository Center and arranging of the local Sukuk program, followed by further steps to develop and deepen the local and secondary debt markets.
The listing of public debt instruments on Tadawul is one of many initiatives undertaken to strengthen the role of the Ministry of Finance's Debt Management Office in line with the ambitious framework of the Kingdom Vision 2030.
The Finance Ministry's Debt Management Office started the registering of government debt instruments at the Securities Depository Center via the Tadawul platform in April 2017.

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