RIYADH: Saudi Arabia completed its July issuance of SR3.21 billion ($855.7 million) riyal-denominated sukuk, according to the National Center for Debt Management.
The level again remained above SR 3 billion, after the June emission level of SR 4.4 billion, SR 3.23 billion in May, SR 7.39 billion in April and SR 4.4 billion in March.
NDMC revealed that the Shariah-compliant debt product was split into five tranches in July.
The first tranche is valued at SR 612 million and is due in 2029, while the second tranche reached the value of SR 159 million due in 2031.
The value of the third tranche was SR 961 million due in 2034 and the fourth tranche was SR 1.25 million with a maturity date of 2036.
The fifth tranche was SR 226 million due in 2039.
This is part of the Royal Sukuk Issuance Program which began in 2017 to establish an unlimited riyal-denominated sukuk initiative under the NDMC.
The announcement from NDMC came as Kuwait's Markaz Financial Center released its own data on bond and sukuk issuance across the Gulf Cooperation Council region for the first half of 2024.
Saudi Arabia was the leading player in the six months to the end of June, raising $37 billion through 44 issues, the analysis showed.
A report published by S&P Global in April said global sukuk issuance is expected to be between $160 billion and $170 billion in 2024, holding steady from $168.4 billion in 2023 and $179.4 billion in in 2022.
According to the US-based company, issuance of this Shariah-compliant debt product began on a “firm basis” in 2024, with Saudi Arabia emerging as a key contributor to performance.
The rating agency also noted that the sukuk market will continue to grow in the near term, driven by funding needs in key Islamic finance countries, along with ongoing economic transformation programs currently underway in countries such as Saudi Arabia.
He added: “The decline in issuance volume in 2023, which was mainly due to tighter liquidity conditions in Saudi Arabia's banking system and Indonesia's lower fiscal deficit, was somewhat offset by an increase in foreign currency sukuk issuance.”
In April, another report released by Fitch Ratings also echoed similar sentiments, noting that global sukuk issuance is expected to continue to grow in the coming months of this year.
Fitch noted that economic diversification efforts and the rapid development of the debt capital market in the Gulf Cooperation Council region will support the growth of the sukuk market in the coming months.
