Tadawul cuts par value of 29 government debt instruments today

The Saudi Stock Exchange (Tadawul) today will start reducing the par value of 29 domestic government debt instruments to SAR 1,000 from SAR 1 million.

In addition, the Securities Depository Center Company (Edaa) will also embark on restructuring fees for the services provided in the sukuk and bonds market as follows:

For Issuers:

1) The fees of initial public offering (IPO) file upload will be decreased from SAR 50,000 as fixed fees and SAR 2 per subscriber as variable fees to a fixed sum of SAR 10,000 only, for listed sukuk and bonds.

2) The annual registry fees will be cut from SAR 100,000 to SAR 20,000 for listed sukuk and bonds.

3) Tadawul’s minimum fee required for annual listing fees will be decreased from SAR 30,000 to SAR 10,000 for first issuances.

4) Tadawul’s minimum fee required for annual listing fees will be decreased from SAR 30,000 to SAR 5,000 for subsequent issuances.

5) Tadawul will introduce a cap for the annual listing fees amounting to SAR 50,000 for first issuances

6) Tadawul will also introduce a cap for the annual listing fees amounting to SAR 25,000 for subsequent issuances. 

For market members and investors:

7) Brokerage trading commissions will be deregulated by removing the minimum commission and cap of SAR 500, so as to encourage fair competition with the services provided by brokerage firms.

8) Sukuk and bond trading commission will be cut from 2 basis points to 1 basis point of the traded value.

9) Sukuk and bonds trading commission mentioned will be reduced by 0.5 bps for all investors until Dec. 13, 2021, except for cases where a buyer or seller is appointed as primary dealer.

10) Edaa will introduce an annual safekeeping fee of 0.4 bp for listed sukuk and bonds holdings, so as to boost trading in the secondary market. This includes stimulating financing activities such as securities lending and repo agreements to maximize the return on assets and recover the value of holdings.