*Fahad Al - Talal from Riyadh
In his speech with Al-Eqtisadiah, Engineer Khalid Hussan, the Chief Executive Officer of Saudi Stock Exchange (Tadawul), said, "The Securities Depository Center is currently negotiating with a group of foreign registration companies, with the aim of listing the international bonds and sukuk of the Public Debt Department of the Ministry of Finance in Tadawul."
He added, "after the first stage of listing Sukuk and local bonds in Tadawul, we are currently working on listing international sukuk and bonds, which requires that the SDC be linked to a group of registration houses in the world in order to allow them to be traded in the Saudi market, since the owners of these securities are foreigners."
He stressed that after the completion of negotiations with the group of foreign registration companies, Tadawul will be able to include international issuances to manage the public debt office of the Ministry of Finance even if it is owned by foreign investors. He pointed out that the start of listing will be gradually signed with a company or two companies and then the rest of the listings will follow.
On the timing of listing in the Saudi market, Al-Hussan said, "There are certain conditions that must be taken into account before announcing the exact time of listing, which is part of the requirements that we are working on with the Department of the Debt Office of the Ministry of Finance and the listing will be announced in a timely manner."
Saudi Arabia's total international debt sukuk are estimated at $ 52 billion, while the value of applications was $ 202 billion, or 388 per cent.
For the fifth time, the global financial community has confirmed its confidence in the strength of the Saudi economy. The second issue of the dollar-denominated international Sukuk program, which was closed by the Ministry of Finance a few days ago, has attracted a large number of investors.
According to a monitoring unit reports in Al-Eqtisadiah, demand was covered by 500 per cent, with a demand volume of $ 2 billion, while coverage or so-called investor appetite for the program was $ 10 billion.
Since October 20, 2016, the Ministry of Finance has issued financial sukuk until September 13, 2018. Saudi Arabia's debt instruments have issued five issues, two of which are Sukuk, three of which are international bonds, all of which have been covered more than twice.
The first issue of the Saudi Ministry of Finance was a dollar-denominated international bond in October 2016, with a value of about $ 17.5 billion, while the value of the turnout or coverage is about 67 billion US dollars by 383 per cent.
The second issue of debt instruments is international Sukuk, it was the first offering of this type of debt instruments, and it closed in April of 2017, and the value of the offering $ 9 billion, while the value of closing about $ 33 billion, covering 367 per cent.
In addition, the third debt instruments issues were bonds, and it closed the offering in September of 2017, that worth the amount required of $ 12.5 billion. The amount of coverage amounted is to be about $ 40 billion, or 320 per cent.
The fourth issue of international debt instruments is also bonds, and closed the offering in March 2018 worth $ 11 billion, while the value of coverage about 52 billion US dollars by 473 per cent.
The fifth and last edition of the Ministry of Finance of the international debt instruments, which closed yesterday, the international instruments, worth $ 2 billion, while the total value of applications was amounted to $ 10 billion 500%.
