Saudi Arabia Raises $3.25 Billion via Islamic Bonds
The Kingdom of Saudi Arabia is actively expanding its bond market through government and corporate issuances to fund budget needs and diversify financing channels.
Saudi Arabia's capital markets show increased activity as sovereign and financial institutions issue bonds to secure funding for budgetary requirements and investment projects. The Kingdom raised $3.25 billion from the sale of two tranches of dollar-denominated Islamic sukuk by the government. Al Rajhi Bank began issuing sukuk from its second tranche, with a specific value not yet defined. The Arab National Bank completed its issuance of first-tranche sukuk worth $750 million at an annual yield of 6.5%. Additionally, Saudi Mining Company raised $1 billion through its first international loan facility including revolving credit lines. These transactions highlight growing reliance on debt instruments to diversify funding sources and strengthen capital bases.
