Saudi Arabia Completes $3.25 Billion Sukuk in September 2026

Saudi Arabia’s National Debt Management Center said on September 1, 2026 that it had completed a $3.25 billion dual-tranche international sukuk, structured on an ijarah basis through KSA Ijara Sukuk Limited. The offering split into a $1.25 billion five-year tranche maturing 2031 and a $2 billion ten-year tranche maturing 2036, per NDMC’s announcement.

NDMC’s September 1 announcement put the total at SAR 12.19 billion, with the first tranche worth SAR 4.69 billion and the second SAR 7.5 billion. The paper came from a special purpose vehicle, KSA Ijara Sukuk Limited, under the Global Trust Certificate Issuance Program, known as KSA Ijarah Sukuk.

Argaam, the Saudi financial news outlet, reported the same terms on September 1, 2026. It placed the deal within the Saudi government’s International Sukuk Issuance Program, structured on an ijarah basis, with arrangements completed through KSA Ijarah Sukuk Ltd.

The Halal Times covered the wider sukuk market earlier in 2026, reporting in July on the slowdown in Gulf sukuk issuance during the first half of the year.

Pricing Tightened on Both Tranches

Funds Global MENA, in a September 2, 2026 report, set out the pricing. The five-year tranche came at 70 basis points over US Treasuries, carrying a fixed coupon of 5.257%, while the 10-year came at 80 basis points over Treasuries, carrying a fixed 5.598% coupon. Both were reoffered at par. That’s a 30 basis point tightening on both maturities against initial price thoughts of around 100 basis points over Treasuries for the five-year piece and roughly 110 basis points for the 10-year. The five-year book drew orders above $6 billion, the 10-year above $7.5 billion.

Order Book Figures Diverge

The sources don’t agree on how large the order book was. NDMC’s announcement and Argaam each cited USD 16.5 billion on September 1, 2026, with subscription running at five times the issuance size. Funds Global MENA, a day later, reported an overall order book above $13.5 billion and attached its own qualifier to that number: it excludes joint lead manager interest. No source reconciles the two.

Strategy and Investor Base

Both NDMC and Argaam describe the deal as the second international sukuk the Saudi government has issued structured on an ijarah basis. NDMC describes the sale as part of a strategy meant to diversify the investor base and cover the Kingdom’s financing needs. Saudi Arabia’s wider position in Islamic finance was the subject of an assessment The Halal Times published in December 2025.

Bookrunners and Listing

Citi, Goldman Sachs International, HSBC, JP Morgan, and Standard Chartered Bank acted as joint global coordinators and active bookrunners, Funds Global MENA reported. The passive joint lead managers were Abu Dhabi Islamic Bank, BNP Paribas, Dubai Islamic Bank, Fubon Bank, ING, Intesa Sanpaolo, Aljazira Capital, and Societe Generale. The sukuk carries a listing on the London Stock Exchange’s Main Market, with proceeds going to general domestic budgetary purposes. The five-year paper matures in 2031 and the 10-year in 2036.

Frequently Asked Questions

How much did Saudi Arabia raise in its September 2026 sukuk issuance?

Saudi Arabia’s National Debt Management Center raised $3.25 billion (SAR 12.19 billion) through a dual-tranche international ijarah sukuk, announced on September 1, 2026, split into a $1.25 billion five-year tranche and a $2 billion ten-year tranche, according to NDMC’s announcement.

What were the coupon rates on the sukuk tranches?

The five-year tranche carries a fixed coupon of 5.257% at a spread of 70 basis points over US Treasuries, while the 10-year carries a fixed 5.598% at 80 basis points over Treasuries, per Funds Global MENA’s September 2, 2026 report.

What order book figures did the sources report for the sukuk?

NDMC and Argaam both reported an order book of $16.5 billion with 5x oversubscription in NDMC’s September 1, 2026 announcement and Argaam’s same-day report, while Funds Global MENA reported orders surpassing $13.5 billion excluding joint lead manager interest in its September 2, 2026 report. Neither figure has been reconciled with the other by any of the three sources.

Which banks arranged the sukuk?

Citi, Goldman Sachs International, HSBC, JP Morgan, and Standard Chartered Bank served as joint global coordinators and active bookrunners, according to Funds Global MENA’s September 2, 2026 report. Passive joint lead managers included Abu Dhabi Islamic Bank, BNP Paribas, Dubai Islamic Bank, Fubon Bank, ING, Intesa Sanpaolo, Aljazira Capital, and Societe Generale.

Where is the sukuk listed and what will the proceeds fund?

Funds Global MENA’s September 2, 2026 report says the sukuk is listed on the Main Market of the London Stock Exchange and that proceeds go toward general domestic budgetary purposes.