The National Debt Management Center in Saudi Arabia announced the successful completion of its first international dollar-denominated bond issuance under its 2026 program, a move reflecting continued global confidence in the Saudi economy and its financial strength. The issuance was a resounding success, with the Kingdom raising US$11.5 billion (equivalent to SAR 43.13 billion) amid strong demand from international financial institutions and investors.
Details of the payment plans and due dates
This issuance was divided into four time tranches aimed at covering various maturity dates in line with the public debt management strategy, and their distribution was as follows:
- The first tranche: worth $2.5 billion (9.38 billion riyals) for 3-year bonds maturing in 2029.
- The second tranche: worth $2.75 billion (10.31 billion riyals) for 5-year bonds maturing in 2031.
- The third tranche: worth $2.75 billion (10.31 billion riyals) for 10-year bonds maturing in 2036.
- The fourth tranche: It is the largest in size, with a value of $3.5 billion (13.13 billion riyals) for long-term bonds with a duration of 30 years, maturing in 2056 AD.
Investor confidence and coverage indicators
The offering witnessed overwhelming demand, exceeding expectations, with total subscription requests reaching approximately US$31 billion, representing an oversubscription rate of 2.7 times the total issuance value. This high subscription rate is a tangible testament to international investors' appetite for Saudi assets and their confidence in the Kingdom's financial strength and its ability to meet its long-term obligations, particularly with the offering of a 30-year tranche.
The economic context and the importance of the proposal
This offering is part of the National Debt Management Center's medium-term debt strategy, which aims to diversify funding sources between local and international markets and maintain the Kingdom's presence in global debt markets. This step is particularly important given the major economic transformations the Kingdom is undergoing under Vision 2030, as mega-projects and economic diversification programs require stable and diversified financial flows.
This issuance also contributes to enhancing the efficiency and effectiveness of public debt management by extending the average maturity of the debt portfolio and reducing refinancing risks. Furthermore, the successful pricing of these bonds at competitive yields reinforces the Kingdom's position as one of the most attractive and stable emerging economies in the region and underscores the success of its fiscal policies in maintaining strong credit ratings with international rating agencies.
In conclusion, this achievement reflects the Saudi economy’s ability to adapt to global changes and the attractiveness of the investment opportunities it offers, which enhances foreign capital flows and supports sustainable development goals.
