The National Debt Management Center announces that it has closed the March 2021 issuance under the Saudi Arabian Government SAR-denominated Sukuk Program. The issuance size was set at SAR 7.674 billion (Seven billion and six hundred seventy-four million SAR).
The credit rating agency "Moody's" updated its credit report for Saudi Arabia affirming its “A1" rating for the Kingdom with a stable outlook.
The Sukuk issuances were divided into two tranches as follows:The rating affirmation is based on Moody's assessment of the government's improving track record of fiscal policy effectiveness, evidenced by policy responses to both periods of low and high oil prices, which demonstrate a commitment to fiscal consolidation and longer-term fiscal sustainability.In its report, the agency expected the continuation of positive growth in real GDP by 5.0% on average in the period 2021-2023, supported by further post pandemic recovery, progress on economic diversification, capital and development projects, and a further unwinding of oil production cuts.Despite the rise in oil prices, the agency also expected the continuity of the government's commitment to further fiscal consolidation in the medium term and the spending control improvements, that demonstrate an increasingly more effective fiscal policy framework in Saudi Arabia.
• The first tranche has a size of SAR 2.710 billion (two billion, seven hundred and ten million SAR), and a total tranche size of SAR 6.715 billion (six billion and seven hundred fifteen million SAR), matures in 2028.Moody's assessment of Saudi Arabia's financial institutions, highlights the positive impact of the structural measures and reforms taken by the Kingdom during the past five years. In Addition to the government's tangible progress in improving its domestic business environment, that illustrate the fiscal policy effectiveness and increased government efficiency.
• The second tranche has a size of SAR 4.964 billion (four billion and nine hundred sixty-four million SAR), and a total tranche size of SAR 4.964 billion (four billion and nine hundred sixty-four million SAR), matures in 2031.