Saudi Arabia’s Ministry of Finance has said that it has completed a SR3.25bn ($867m) Islamic bond issue as part of the government’s Saudi Riyal-denominated sukuk programme.

The bonds were divided into three tranches. The first tranche has a size of SR2.33bn and matures in 2023. The second has a size of SR360m and matures in 2025. The third tranche has a size of SR560m and matures in 2028.

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