Maturities of the instruments to be listed vary between five, seven and 10 years.
Saudi Arabia’s Ministry of Finance, represented by its Debt Management Office, announced the approval from the Capital Market Authority to list and trade Saudi Riyal-denominated government debt instruments on the Saudi Stock Exchange Tadawul. This will include both Bonds and Sukuk, according to a statement from the Ministry.
The Debt Management Office commenced registering government debt instruments at the Securities Depository Center via the Tadawul platform in April 2017. The new listing will come into effect on 8 April 2018 through a joint press conference to be held by the Ministry of Finance/Debt Management Office, the Capital Market Authority and Tadawul.
In total, 45 bonds and Sukuk will be issued, totaling over SAR 204 billion. From this, SAR 58 billion will be Government Sukuk. The period of issuance varies for each of the government debt instruments. Maturities of the instruments to be listed vary between five, seven and 10 years.
Commenting on the decision, His Excellency Minister of Finance Mr. Mohammed Al-Jadaan said, “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 government debt instruments is an important step towards increasing transparency under a supervisory framework that provides disclosure to investors. 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.”