RIYADH: Saudi Arabia raised $3.25 billion through a two-tranche international sukuk issuance that drew approximately $16.5 billion in orders, according to the National Debt Management Center.  The order book was about five times the size of the offering, the center said, as the Kingdom tapped international Islamic debt markets through its Global Trust Certificate Issuance Program.  The transaction, issued by KSA Ijara Sukuk Limited, marked Saudi Arabia’s second international offering based on an Ijarah, or leasing, structure. The first tranche comprised $1.25 billion of five-year sukuk maturing in 2031, while the second consisted of $2 billion of 10-year sukuk due in 2036.  The latest sale comes as Saudi Arabia continues to tap domestic and international debt markets to finance a projected budget deficit and refinance maturing obligations. The Kingdom’s 2026 borrowing plan estimates total financing needs of up to SR217 billion ($57.71 billion), comprising a projected SR165 billion budget deficit and about SR52 billion in debt principal repayments.  The plan allocated between 25 percent and 30 percent of expected funding to international debt markets, with a focus on US dollar-denominated issuances while retaining the flexibility to access other currencies and markets.  In its latest release, the center stated: “This transaction is part of NDMC's strategy to diversify the investors’ base to meet the Kingdom’s financing needs from international debt capital markets efficiently, effectively and opportunistically.”     Second Ijarah issuance     Saudi Arabia completed its first international Ijarah-structured sukuk issuance in September 2025, raising $5.5 billion.  That offering comprised $2.25 billion of five-year certificates maturing in 2030 and $3.25 billion of 10-year sukuk due in 2035. It attracted an order book of about $19 billion, equivalent to 3.5 times the amount issued.   The latest transaction had a higher subscription multiple at about five times, although its $16.5 billion order book was smaller than the $19 billion recorded for the 2025 offering.      Borrowing program      In May, the NDMC said it had secured approximately 90 percent of the Kingdom’s funding needs before geopolitical events in the region. It said it would continue monitoring international public markets and consider accessing them when favorable opportunities arose to meet future financing requirements.  The latest international sale follows an August domestic sukuk issuance in which the Kingdom allocated SR9.518 billion across five tranches maturing between 2031 and 2041.   Saudi Arabia’s public debt is projected to reach about SR1.62 trillion by the end of 2026, equivalent to 32.7 percent of gross domestic product, compared with an estimated SR1.46 trillion, or 31.7 percent of gross domestic product, in 2025.