RIYADH: Saudi Arabia raised SR2.42 billion ($644 million) through its May sukuk issuance, lower than the previous month’s sale as the Kingdom scaled back borrowing after April’s outsized fundraising round.
In a press release, the National Debt Management Center said the issuance, conducted under the government’s riyal-denominated sukuk program, was divided into five tranches maturing between 2031 and 2041.
The bulk of the allocation was concentrated in the mid-range tranches: the third tranche, maturing in 2036, raised SR1.01 billion, while the fourth tranche, due in 2039, attracted SR1.02 billion, together accounting for over 83 percent of the total issuance.
Saudi Arabia has accelerated debt issuance in recent years as it balances lower oil revenues with heavy spending on Vision 2030 projects, including infrastructure, tourism, industrial development and giga-projects such as Neom, while maintaining fiscal flexibility through domestic and international borrowing.
The May issuance marks a steep decline from April, when Saudi Arabia raised SR16.95 billion across similar maturities, with investor demand heavily skewed toward longer-dated paper.
That month’s offering also skewed toward longer-dated paper, with the 2041 tranche alone absorbing SR5.68 billion and the 2036 tranche drawing SR5.67 billion.
NDMC has maintained a steady issuance calendar in both domestic and international markets, even as lower oil prices and higher project spending continue to shape the Kingdom’s financing requirements.
Earlier this month, NDMC announced the completion of the Kingdom’s 2026 annual borrowing plan, saying it had secured “approximately 90 percent of the Kingdom’s funding needs” before recent geopolitical developments in the region.
The debt management office said it had reduced international public market issuances “selectively” from initial projections after successfully meeting financing requirements through private channels and the domestic market.
“Should the ongoing coordination with the Ministry of Finance identify a need for additional financing, NDMC intends to leverage private channels and local markets as the primary funding sources,” it added.
NDMC said it would continue monitoring international debt markets and could return when “favorable opportunities arise” to meet future financing needs.
