Saudi Arabia’s National Debt Management Center (NDMC) has completed its borrowing plan for 2021 worth more than SR 125 billion ($ 33.3 billion), reported SPA, quoting the Minister of Finance
Announcing the conclusion of the annual borrowing plan, Mohammed bin Abdullah Al Jadaan, who is also the chairman of NDMC, announced that 60.5% of the debt raised in 2021 came from local sources. The remaining 39.5% consisted of international loans.
The plan is part of the public debt strategy adopted to meet financing needs, seize opportunities available in local and global markets, and manage potential risks, he said.
Al Jadaan pointed out that the NDMC board approved the annual borrowing plan proposal earlier this year. The plan covered funding needs by issuing SR125 billion debt securities, including sukuk and bonds, which focused on fixed rate instruments to hedge against the risks of potential interest rate fluctuations. ‘interest.
Al Jadaan reported that NDMC had successfully organized the issuance of sovereign bonds worth 6.8 billion euros, with the largest negative yield issue ever recorded in the EU, with a ratio of 3.3 times coverage (equivalent to 11.3 billion euros) of the total issue, which shows the Kingdom’s leading position in world markets.
On another front, NDMC was successful in securing $ 3 billion in funding provided by the Korea Trade Insurance Corporation (KSURE) earlier this year. In addition, NDMC also organized the second early redemption of a portion of the bonds and sukuk maturing next year (2022) valued at over SR 33 billion.
The minister stressed that the kingdom’s credit rating has been revised in terms of outlook by credit rating agencies to “stable”. This is a testament to the efficiency of the tax system, its ability to overcome challenges, its forward-looking approach and its efforts to develop plans to address these challenges, he added.
Acting CEO Hani bin Medaini Al Medaini said NDMC is striving to broaden the investor base, open channels of communication with investors locally and internationally, and enter new regions geographic.
He added that the NDMC was working with international financial institutions to join the government’s local debt instruments primary traders program and attract new foreign capital to use the opportunities available in the debt instruments organized by the NDMC and seize the opportunities. in local and international markets.