The agency cited another document, according to which Saudi Arabia set the initial benchmark price for six-year sukuk at around 110 basis points over US Treasury bills and around 135 basis points over US Treasury bills. of the Treasury for sukuk at ten years.
Saudi Arabia has appointed Citi, JPMorgan and Standard Chartered as global supply coordinators, and Aljazira Capital, BNP Paribas and Goldman Sachs are participating in supply management.
Saudi Arabia’s latest offering in the bond market came in January, when the kingdom raised $10 billion in conventional bonds in three tranches.
Rising oil prices helped the Kingdom post a budget surplus for the first time since 2013 last year, and it expects to continue posting a surplus, albeit to a lesser extent, in 2023, which is clouded by the global economic concerns and uncertainty about oil prices.
“They are cutting oil production and a recession is likely in the US, so this is a good example of prudent debt management,” said Mohieldin Kronfol, Chief Investment Officer of Global Sukuk and MENA Fixed Income. at Franklin Templeton.
And last January, the Saudi Minister of Finance, Muhammad Al-Jadaan, approved the annual borrowing plan for the year 2023, after its approval by the board of directors of the National Center for Debt Management.
According to the International Monetary Fund, in a recent report, the Saudi economy grew by 8.7% last year and is expected to grow by 3.1% this year.
On the other hand, government data showed on Monday that the annual inflation rate in Saudi Arabia reached 2.7 percent in April, unchanged from the previous month.
On a monthly basis, the General Statistics Authority said consumer prices rose 0.4% in April.
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