Saudi Arabia has estimated its borrowings at nearly 45 billion Saudi riyals ($11.99 billion) after securing almost SAR 48 billion of the 2023 total financing needs in 2022 through pre-funding activities, the National Debt Management Center (NDMC) said in a statement.

Minister of Finance Mohammed Al-Jadaan approved the annual borrowing plan for 2023 following the endorsement of NDMC’s board.

The plan includes sovereign debt developments, debt market initiatives for 2022, 2023 funding plan and its guidelines, in addition to the domestic sukuk issuance calendar under the Saudi Arabian government SAR-denominated sukuk program.

Despite the anticipation of achieving a budget surplus in 2023, the kingdom aims to continue its funding activities in the domestic and international markets to repay debt principal that will mature this year and during the medium term.

In addition, the kingdom will utilise opportunities based on market conditions to enter into pre-funding and liability management transactions, financing strategic projects and executing government-alternative funding transactions to promote economic growth, such as capital expenditure and infrastructure financing.

NDMC will continue to consider additional funding activities subject to market conditions and through available funding channels locally or internationally.

“This is to ensure the Kingdom’s continuous presence in debt markets and enhance its debt portfolio characteristics, the statement added.

(Editing by Seban Scaria )