RIYADH: Saudi Arabia has restructured its government debt maturity profile through one of its largest active debt management operations this year, combining an early buyback of SR17.1 billion ($4.54 billion) in outstanding debt with a new SR17.2 billion sukuk issuance aimed at extending maturities through 2041.
The transaction, completed last week, involved the repurchase of selected Ministry of Finance debt securities alongside the sale of five sukuk tranches with maturities stretching to 2041.
According to sources cited by Al-Eqtisadiah, investor demand was the leading factor behind the decision to split the issuance into five tranches. Authorities also assessed the Kingdom’s current and future financing requirements, prevailing debt market conditions, and the composition of the government’s debt portfolio to balance borrowing costs with risk management objectives.
The sources stressed that the operation does not increase Saudi Arabia’s overall debt burden but redistributes repayment obligations over a longer period.
Saudi Arabia issued SR133 billion in debt across domestic and international markets in 2025, including SR58 billion locally and SR75 billion globally, underscoring its strategy of diversifying funding sources while strengthening public debt management.
