JPMorgan Emerging Markets’ Index Announces Inclusion of Saudi Bonds’ Issuance, accounting for 3.1%

Riyadh, JPMorgan Emerging Markets' Index has announced inclusion of Saudi Arabia's bills (mainly treasury bonds) issues, in a positive development, that reflects the Kingdom's role, among leading sovereign issuers, in emerging markets.

The Kingdom's issues will account for 3.1% of the weight of the indices, according to JPMorgan's announcement, which in turn will support the investor base for the Government of the Kingdom's issues, the issuances of government-owned companies and the improvement of liquidity levels.

Such bold move was unfolded, in light of the strategic initiatives adopted by the Ministry of Finance's Public Debt Management (PDM) Department, to ensure the Kingdom's sustained access to global debt markets.

Since the first Saudi internationally float bonds were launched, in 2016, the (PDM) methodology has evolved as a model, in which the office seeks to communicate with investors and offer issuance deals.

Kingdom of Saudi Arabia, has taken long periods making great efforts, in regard of bolstering the IPO process to become a reliable model, in which transactions are closed in one day only.

Continuous global communications with investors have contributed to the spread of strategic initiatives, such as the inclusion of the index and the office expects estimated flows of about $11 billion, as a result of this listing, which will be phased out, monthly, over a period of 9 months.

For his part, the Minister of Finance and Chairman of the Financial Sector Development Program Committee Mohammed bin Abdullah Al-Jadaan reaffirmed that this listing is a result of the support of the Ministry of Finance, represented by the Public Debt Management, provided with, by the Government of the Kingdom, under the guidance of the Custodian of the Two Holy Mosques King Salman bin Abdulaziz Al Saud and follow-up of HRH the Crown Prince, which strengthened all efforts to reach the advanced level, making the Kingdom among the most important exporters of sovereign debt, globally speaking.

This listing represents a quantum leap forward, in the Kingdom's position, in the global debt markets and enhances confidence, in the Saudi economy and its financial position, within the framework of the strategy of the Financial Sector Development Program, one of the Kingdom's Vision 2030 programs, with a main concern over securing increasing the liquidity and access to large capital, in the global market.

Source: Saudi Press Agency