KSA first 2017 sukuk sale raises SAR 17bn

KSA first 2017 sukuk sale raises SAR 17bn
Investors offered over SAR 51 billion

Riyadh – Mubasher: Saudi Arabia’s first local sukuk sale in 2017 attracted SAR 17 billion ($4.5 billion), as the government received offers worth three times the deal size, Arabian Business reported.

Investors offered over SAR 51 billion, the news outlet cited a statement by the Ministry of Finance.

Five-year bonds priced at 2.95% were sold for SAR 12 billion, 7-year sukuk at 3.25% were sold for SAR 2.9 billion, and 10-year bonds at 3.55% for SAR 2.1 billion, sources told Arabian Business.

The Kingdom is seeking to bridge its budget deficit as low oil prices and austerity measures are troubling the economy.

On Sunday, the government had announced a local, unlimited size sukuk programme, as the budget deficit is forecast to reach SAR 198 billion this year, equivalent to 7.7% of economic output. 

Source: Mubasher