Saudi Arabia has closed its fourth local currency sukuk (Islamic bond), raising SR10bn ($2.7bn), the Finance Ministry has said. Orders totalled nearly SR32bn, meaning the sukuk was more than three times oversubscribed. The sukuk was divided into three tranches with maturities ranging from five to 10 years.

The first tranche, of SR4.15bn, matures in 2022; the second tranche, of SR1.35bn, matures in 2024; and the third tranche, of SR4.5bn, matures in 2027.

Riyadh has launched the domestic sukuk programme to help cover its large budget deficit, caused by the collapse in oil prices. Thirteen Saudi banks have been qualified to participate in the programme.