Saudi Arabia’s new sukuk issuance has recorded around $20 billion in orders, the National Debt Management Centre (NDMC) said.

The NDMC confirmed the order book for the international trust certificates issuance (sukuk) on Wednesday, citing an oversubscription of four times.

The triple-tranche offering issued a total of $5 billion, equivalent to SAR 18.75 billion.

The first tranche for a three-year sukuk maturing in 2027 was valued at $1.25 billion, while the second tranche totalled $1.5 billion for a six-year sukuk maturing in 2030. The third tranche totalled $2.25 billion for a 10-year sukuk maturing in 2034.

The NDMC noted there was a strong demand for the issuance, highlighting international investors’ confidence in the strength of the Saudi economy and investment opportunities in the kingdom.

The sukuk offering is part of a strategy to diversify Saudi’s funding sources, as the kingdom seeks to manage debt repayments, as well as maintain its presence in debt markets.

(Writing by Cleofe Maceda; editing by Seban Scaria)