Saudi’s Finance Ministry issues $1.53bn in Sukuk

Arabian businessman keeps credit card and talks on the phone

Arabian businessman keeps credit card and talks on the phone

Saudi Arabia’s Ministry of Finance has raised 5.755 billion riyals ($1.53 billion) in sukuk, as part of the monthly program on Thursday.

Under the Saudi government SAR-denominated Sukuk program, the May 2020 issuance was sold in two tranches.

The maturity of the 5-year tranche amounting to 3.805bn riyals and carrying a final profit of 2.17% will be on March 23, 2025. Similarly, with the 10-year tranche with a tranche size of 10.3bn will mature on March 23, 2030, with a profit rate of 2.69%.

Despite the global financial market and instability, the Sukuk bond instrument continues to be a good investment area for many classes of investors. Further, retail Sukuk is a great avenue for new ways to financial market.

The Ministry of Finance’s debt management office reported sukuk insurance of 5.55 billion riyals and 15.5 billion riyals in the months of April and March, respectively.

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