Saudi Arabia continues to assert its position as a financial powerhouse in international markets, as its latest issuance of dollar-denominated Islamic bonds, or sukuk, witnessed remarkable success, confirming investor confidence in the Kingdom\u2019s economy.<\/p>\n\n\n\n
Despite challenges facing international financial markets, Saudi Arabia has raised $5.5 billion from the sale of sukuk on strong demand.<\/p>\n\n\n\n
The five-year Islamic debt was priced at $2.25 billion. The 10-year portion was priced at $3.25 billion.<\/p>\n\n\n\n
The proceeds from the debt transaction attracted over $19 billion in orders.<\/p>\n\n\n\n
According to Reuters, the five-year Islamic debt was priced at $2.25 billion with spreads set at 65 basis points over US Treasuries, tighter than the 95 bps indicative price guidance released Tuesday.<\/p>\n\n\n\n
The 10-year portion was priced at $3.25 billion with spreads set at 75 bps, narrowed down from 105 bps.<\/p>\n\n\n\n
Citi, HSBC, JPMorgan and Standard Chartered are the global coordinators and bookrunners for the debt sale, with ICBC and Mizuho banks acting as active joint lead managers.<\/p>\n\n\n\n
According to Mohammed Al Farraj, who leads Arbah Capital’s asset management team, the exceptional demand for the issuance of sukuk points to a number of factors that have enhanced investor confidence and the attractiveness of this financial instrument.<\/p>\n\n\n\n
\u201cChief among these factors is the Kingdom\u2019s strong and stable credit rating, which reinforces investors\u2019 belief in the Saudi economy\u2019s ability to meet its financial obligations, making it a safe haven amid global market volatility.”<\/p>\n\n\n\n
Al Farraj told Asharq Al-Awsat that \u201cthis confidence reflects an active and effective debt management strategy, as the National Debt Management Center has repurchased previous sukuk and restructured maturity timelines.\u201d<\/p>\n\n\n\n
\u201cThis sends a reassuring message about the Kingdom\u2019s ability to handle its future obligations in an organized and planned manner,\u201d he said.<\/p>\n\n\n\n
He added that Saudi Arabia is now in a leading position alongside the world\u2019s top players, which further strengthens its presence in the international debt market.<\/p>\n","protected":false},"excerpt":{"rendered":"
Saudi Arabia continues to assert its position as a financial powerhouse in international markets, as its latest issuance of dollar-denominated Islamic bonds, or sukuk, witnessed…<\/p>\n","protected":false},"author":2,"featured_media":2757,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15,16,4,7],"tags":[22,78,97,98,99],"class_list":["post-2756","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-finance","category-international","category-mena","tag-business","tag-finance","tag-islamic-bonds","tag-islamic-finance","tag-sukuk"],"yoast_head":"\n