Saudi Arabia mulls foray into new debt markets

Logo of The National Debt Management Center (NDMC) 

The National Debt Management Center (NDMC) is exploring entering new markets for debt instruments, including green bonds, to ensure sustainable access to the various sovereign debt markets at fair prices within well-studied frameworks and fundamentals for risk management.

The NDMC intends to diversify its financing channels during 2025 based on the needs and conditions of local or global markets and investor interests, thus increasing the contribution of the monetary hedging policy in raising confidence in the local economy, Al-Eqtisadiah newspaper reported.

Moreover, Saudi Arabia aims to expand its investor base this year through roadshows targeting investors in Asia, Europe and North America.

According to data available with Argaam, NDMC recently announced the completion of receiving investors' requests of the international issuance for bonds under the Kingdom's Global Medium-Term Note Issuance Program (GMTN). The total order book reached around $37 billion, a three-fold oversubscription at SAR 45 billion ($12 billion).

As per the Kingdom’s annual borrowing plan for the fiscal year 2025, approved in January, the expected financing needs for 2025 amount to nearly SAR 139 billion. This will cover the expected deficit in the state budget, estimated at approximately SAR 101 billion, and repay principal debts worth SAR 38 billion, set to mature this year.