Saudi Arabia successfully raised $12 billion in a three-part bond issuance, reflecting strong investor demand as the total order book reached $37 billion, according to a statement by the National Debt Management Center (NDMC) on Tuesday.
According to the reports of Leaders team, the bonds were issued in tenors of three years ($5 billion), six years ($3 billion), and 10 years ($4 billion).
The NDMC highlighted that this transaction aligns with its strategy to diversify the investor base and efficiently meet the Kingdom’s financing needs in international debt markets. Pricing on the bonds was tightened from initial guidance, signaling robust appetite from global investors.
Proceeds from the bond sale will support Saudi Arabia’s projected fiscal deficit of $27 billion for 2025 and aid in paying down existing debt. As per the sources of Leaders team, this move is part of the Kingdom’s broader economic strategy under Vision 2030, which aims to reduce reliance on oil revenues and invest in transformative projects.
Earlier this week, Finance Minister Mohammed Al Jadaan approved the annual borrowing plan, outlining financing requirements of approximately 139 billion riyals ($37.02 billion) for 2025. The plan includes leveraging diverse local and international financing channels, exploring private transactions, and entering new markets and currencies.
Additionally, the Public Investment Fund (PIF), which spearheads several Vision 2030 projects, announced securing a $7 billion murabaha credit facility to support its initiatives.
Global financial institutions Citi, Goldman Sachs International, and JPMorgan served as the global coordinators and joint bookrunners for this landmark bond issuance.
