RIYADH: Saudi Arabia’s National Debt Management Center concluded the October issuance of its SR-denominated sukuk program, amounting to SR3.98 billion ($1.06 billion) — a 64 percent surge over September. The October issuance was divided into two tranches. The first tranche was valued at SR2.21 billion, set to mature in 2030 and the second at SR1.77 billion due in 2033. “This is to ensure the Kingdom’s continuous presence in debt markets and manage the debt repayments for the coming years while taking into account market movements and the government debt portfolio risk management,” said NDMC in a statement. This issuance confirms the NDMC’s statement in February 2022 that it will continue considering additional funding activities subject to market conditions and through available funding channels locally or internationally. In September, the center raised SR2.45 billion ($650 billion) compared to the total received bids of SR8.75 billion. The first tranche in the September issuance was valued at SR1.02 billion, maturing in 2030, and the second tranche at SR1.42 billion, peaking in 2033. The NDMC’s consecutive successes in sukuk issuances reflect its proactive and adaptive approach to managing Saudi Arabia’s debt portfolio, contributing to its financial stability. The emergence of sukuk capital addressed a significant market gap, offering debt instruments to companies and establishments seeking financing less than SR240 million. This unmet need highlighted a significant demand within many businesses seeking financial support but lacking access to debt instruments. Saudi Arabia’s Public Investment Fund is set to raise $3.5 billion in its first sale of dollar-denominated Shariah-compliant sukuk, according to an official statement issued earlier this month. The wealth fund is offering Islamic bonds with tenors of five and 10 years and the issuance will be listed on London Stock Exchange’s International Securities Market. “The sukuk issuance was more than seven times oversubscribed, with orders exceeding $25 billion, reflecting investor confidence in PIF,” the statement said. The total issuance of the Shariah-compliant bonds consists of two tranches. The first tranche is $2.25 billion, maturing in 2028 and the second is $1.25 billion, with its tenure ending in 2033. The wealth fund will use proceeds from the issuance for its general corporate purposes.