Saudi Arabia issues 1st Islamic bonds

Saudi Arabia issued on Thursday its first Islamic bonds, or “sukuk,” in the local market with a 30-year maturity, and extended the local currency yield curve, Saudi Press Agency reported.

The Ministry of Finance said in a statement that the issuance is expected to be a reference point to price mortgage and provide a new investment product in the local market.

It added that the reference point will also support developmental and infrastructure projects as well as public and private sectors’ debt issuances.

The demand for the issuance, which is close to 80 percent of Saudi Arabia’s total debut issuance in April, is equivalent to 9.25 billion riyals (2.47 U.S. billion dollars).