RIYADH: The Saudi Arabian Mining Co., or Ma’aden, intends to issue US dollar-denominated sukuk under its International Trust Certificate Issuance Program, scheduled to launch Feb. 4, a bourse filing revealed.
Released on the Saudi Stock Exchange, the statement explained that the offer, which will be utilized for general corporate purposes, comes following approval from the firm’s board of directors on Dec. 18 and shareholders’ approval on Feb. 3.
The issuance of the Shariah-compliant bonds is expected through a special purpose vehicle and will be offered to eligible investors both inside and outside the Kingdom.
The move aligns with projections that global sukuk issuance will reach between $190 billion and $200 billion in 2025, driven by increased activity in key markets like Saudi Arabia and Indonesia, according to an analysis from S&P Global in January.
The Tadawul statement further highlighted that Ma’aden appointed Citigroup Global Markets Limited, HSBC Bank plc, and Al Rajhi Capital Co., as joint lead managers for the offering, as well as BNP Paribas, GIB Capital, and J.P. Morgan Securities.
Natixis, Saudi Fransi Capital, SNB Capital, and Standard Chartered Bank were also appointed to the role.
The amount and terms of offer of the Trust Certificates will be determined subject to the market conditions.
The Kingdom’s banking sector is experiencing a surge in activity in debt and sukuk markets as leading financial institutions move to strengthen their capital bases and fund strategic growth initiatives.
Al Rajhi Bank, Banque Saudi Fransi, and Arab National Bank are among the key players announcing substantial issuances to tap local and international investors.
This wave in activity supports the Capital Market Authority’s objective of transforming the nation’s investment market into a key pillar of its economy, as outlined in Vision 2030.
The plan emphasizes expanding financing options, promoting funding opportunities, and attracting international investors.
The CMA’s strategy seeks to expand the debt instruments market to 24.1 percent of gross domestic product by 2025 by implementing regulatory reforms, improving market accessibility, and streamlining issuance processes.
Global sukuk issuances totaled $193.4 billion in 2024, a slight decrease from $197.8 billion in 2023. Despite this marginal decline, the market saw a 29 percent year-on-year increase in foreign-currency-denominated sukuk, surging to $72.7 billion in 2024.
