The total amount allocated was SR3.37 billion with the sukuk issuance divided into tranches — the first has a size of SR2.77 billion maturing in 2031 and the second at SR600 million maturing in 2037.

Also called an Islamic bond, sukuk is a debt product issued according to Shariah or Islamic laws.

“This issuance confirms the NDMC's statement in the mid of February of this year that NDMC will continue, in accordance with the approved Annual Borrowing Plan, to consider additional funding activities subject to market conditions and through available funding channels locally or internationally,” NDMC’s website stated.

This is to ensure the Kingdom's continuous presence in debt markets and manage the debt repayments for the coming years while considering market movements and the government debt portfolio risk management, the statement added.

Last month, NDCM closed the issuance of SR3.65 billion while the total value of all bids received for February stood at SR3.71 billion.

Also divided into two tranches, February sukuk issuance had a size of SR7.5 billion in the first tranche maturing in 2030. The second tranche is valued at SR5.6 billion with the maturity year of 2034.

The program saw a decrease of SR280 million in the amount allocated in March compared to February despite seeing a massive increase in bids received month-over-month.

According to an S&P Global report released in January, global sukuk issuances are expected to continue declining in 2023 to about $150 billion compared to $155.8 billion in 2022 and $170.4 billion in 2021.

The Saudi Riyal Sukuk Program is one of the Kingdom’s financing tools where the Ministry of Finance issues local instruments that are then organized by the NDMC and later divided into monthly tranches for investors.