The Saudi Finance Ministry’s National Debt Management Centre (NDMC) has secured SR4.08bn ($1.09bn) with the May 2025 issuance of its Saudi riyal-denominated Islamic bond (sukuk) programme.

The sukuk issuance was structured into four distinct tranches to meet diverse investor requirements. The first tranche, valued at SR489m, is set to mature in 2029. The second tranche, amounting to SR1bn, will mature in 2032. The third tranche, with a size of SR1.29bn, is scheduled for maturity in 2036, while the fourth tranche, valued at SR1.3bn, will mature in 2039.

In a statement, the centre said the issuance reflects the government's ongoing efforts to manage its public debt amid a challenging fiscal environment.

Saudi Arabia ran a deficit of SR58.7bn in Q1 2025, which was fully financed through borrowing, as there were no withdrawals from government reserves.

Public debt increased in both domestic and external components. Domestic debt closed at SR797bn and external debt closed at SR531.7bn, indicating active debt management strategies to finance the deficit.

In April, the NDMC announced the closure of its April 2025 issuance under the government’s Saudi riyal-denominated sukuk programme, with a total allocation amounting to SR3.71bn.

The sukuk issuance was structured into four tranches. The first, valued at SR1.32bn, is set to mature in 2029. The second tranche, amounting to SR80m, will mature in 2032. The third tranche, with a size of SR765m, is scheduled for maturity in 2036, while the fourth tranche is the largest at SR1.55bn and will mature in 2039.