Saudi Arabia raised SAR 17 billion ($4.5 billion) from its first domestic sukuk sale this year as it seeks to plug up its budget deficit amid low oil prices, the finance ministry said in a statement Tuesday.
The local sukuk sale received over SAR 51 billion worth of bids from investors, resulting in a 300 percent coverage ratio, the ministry added.
The sukuk was divided into three tranches: the first tranche of SAR 12 billion matures in 2022, the second tranche worth SAR 2.9 billion matures in 2024, while the third one’s size is set at SAR 2.1 billion and matures in 2027.
“This significant interest to invest in the Saudi Arabian Government SAR-denominated sukuk is a testament to the strength and resilience of the Saudi economy as well as the Saudi capital markets,” the ministry said.
The sukuk is designed to help the oil-rich Kingdom cover a large budget deficit caused by the fall in oil prices.
It also highlights the Debt Management Office’s role to fulfill the objectives of the Saudi Vision 2030, the statement added.
Last week, the finance ministry said 13 banks in the Kingdom had qualified to participate in its domestic sukuk issues.
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