Saudi Arabia raises $5.5bn in international sukuk issuance

04/09/2025 03:50 AST

Saudi Arabia's National Debt Management Center has completed the issuance of a $5.5 billion (SR20.63 billion) international sukuk under the Kingdom's Global Trust Certificate Issuance Program.

The offering, the country's first international sukuk based on an Ijarah structure, was issued in two tranches. The five-year sukuk maturing in 2030 raised $2.25 billion (SR8.44 billion), while the 10-year tranche maturing in 2035 secured $3.25 billion (SR12.19 billion), NDMC said in a statement.

Investor demand was strong, with the order book reaching about $19 billion - 3.5 times the issuance size - underscoring global confidence in the Kingdom's economic fundamentals and investment outlook.

The NDMC noted that the issuance aligns with its strategy to diversify the investor base and meet Saudi Arabia's financing requirements through international debt capital markets in an efficient and effective manner.

Global and regional banks played a key role in the transaction. Citigroup, HSBC, JP Morgan, and Standard Chartered acted as joint global coordinators and active book-runners.

ICBC and Mizuho joined as active joint lead managers, while Abu Dhabi Islamic Bank, Dubai Islamic Bank, and Al Jazira Capital participated as passive joint lead managers.

A recent report by Kuwait Financial Centre, also known as Markaz, showed Saudi Arabia led the Gulf region's primary debt market in the first half of 2025, raising $47.9 billion through 71 bond and sukuk deals - 52.1 percent of the GCC total.

Global ratings agency S&P has also highlighted the Kingdom's role in driving Islamic finance, projecting global sukuk issuance to reach $190 billion to $200 billion in 2025, with as much as $80 billion in foreign currency offerings.

Arab News