Saudi Arabia Receives Overwhelming Response for International Bond Issuance in 2024

Saudi Arabia Receives Overwhelming Response for International Bond Issuance in 2024Riyadh- The National Debt Management Center (NDMC) has announced the closure of investor requests for Saudi Arabia's first international bond issuance in 2024, as part of the Saudi Government International Bond program. The response from investors has been remarkable, with total subscription requests reaching approximately $30 billion, surpassing two and a half times the total issuance amount of $12 billion (SAR 45 billion), divided into three tranches.

In a statement released by NDMC, it was revealed that the first tranche amounted to $3.25 billion (SAR 12.19 billion) for six-year bonds maturing in 2030. The second tranche consisted of $4 billion (SAR 15 billion) for ten-year bonds maturing in 2034, while the third tranche reached $4.75 billion (SAR 17.81 billion) for thirty-year bonds maturing in 2054.

This strategic move aligns with NDMC's objective to expand its investor base and efficiently meet the Kingdom's financial requirements through global debt markets. By attracting significant interest from international investors, Saudi Arabia aims to diversify its funding sources and strengthen its position as an attractive investment destination.

The overwhelming response from global investors reflects their confidence in the robustness of Saudi Arabia's economy and their recognition of the potential investment opportunities it offers. This positive sentiment further reinforces Saudi Arabia's standing as a reliable borrower within international markets.

The successful bond issuance is a testament to Saudi Arabia's prudent fiscal management and commitment to transparency and accountability. It also underscores investor confidence in the Kingdom's economic reforms outlined under Vision 2030 - an ambitious roadmap aimed at transforming various sectors and driving sustainable growth.

As Saudi Arabia continues on its path towards economic diversification and development, initiatives like the international bond program play a crucial role in attracting foreign investment, fostering economic stability, and supporting long-term growth objectives.

The NDMC's achievement in closing investor requests for the first international bond issuance of 2024 marks another milestone in Saudi Arabia's journey towards achieving its financial goals. The Kingdom remains committed to maintaining strong relationships with global investors and leveraging their support to drive progress across various sectors, ultimately contributing to the overall prosperity of Saudi Arabia and its people.