Saudi debt instruments to debut on Tadawul April 8

The Saudi Stock Exchange (Tadawul) said in a statement that listing and trading local-currency government debt instruments will begin April 8.

Tadawul will list 45 primary and secondary debt instruments, comprising a broad range of government development bonds, floating rate bonds, and Saudi government sukuk, with a value of SAR 204 billion and SAR 385 billion, and maturity dates ranging between five, seven, and ten years.

“The move will help expand the investor base,”said Fahad Al-Saif, head of the Debt Management Office at the Ministry of Finance.

The listing of government debt instruments is an important step towards increasing transparency under a supervisory framework that provides disclosure to investors, Finance Minister Mohammed Al-Jadaan said, adding that it also contributes to ensuring the fair pricing of debt instruments listed on the secondary market.

"Listing the riyal-denominated government debt instruments will enhance the sukuk and bond markets, which in turn will further boost liquidity in the secondary market and enhance the attractiveness of debt instruments to investors and issuers," Khalid Al Hussan, chief executive officer of Tadawul said.

The local instruments are distinguished for their stable returns and high reliability, which will help create a yield curve for the sukuk and bond market, he added.