RIYADH
The debt management office at the Saudi Ministry of Finance has announced a sukuk issuance in the domestic market with a 30-year maturity.
According to the Saudi Press Agency, SPA, this is the first time in the history of the kingdom for such an issuance. It reported the ministry as saying that the sukuk would be valuable for long-term financing pricing in the Kingdom as a whole, and that it will support developmental and infrastructure projects, as well as public and private sector debt issuances.
The issuance is also “expected to be a reference point to price mortgage and savings products by having it as a risk-free point on which price models are based on.” It will also provide new investment products for the local market creating a new investor base such as pension funds, endowments, and insurance companies, the ministry added.
The large demand for the issuance of 30 years is equivalent to 9.247 billion Riyals, close to 80 per cent of the total April issuance.
