Saudi Arabia Announces Sale of USD 2.5 Billion Sukuk with a 6-Year Tenure
October 20, 2022 | Updated at January 13, 2023
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Email The kingdom of Saudi Arabia (Saudi Arabia) has announced the sale of USD 2.5 billion worth of six-years tenured Sukuk as it held its first international bond sale in almost a year on the 18th of October 2022.
Why it Matters?
The Sukuk was sold at 105 basis points (bps) over U.S. Treasuries (UST), tightened from an initial guidance of around 135 bps over UST. According to Dino Kronfol, Chief Investment Officer of Global Sukuk and MENA fixed income, Franklin Templeton Investments, demand is expected to be high because issuance in the Gulf region has decreased by about 60% so far this year and because initial price goals have shown some concessions. This is anticipated to be sufficient to combat the shaky sentiment in international markets.
