2021 Q4 Report En · Page 8

 
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Ministry of Finance and the National Debt Management 
Center (NDMC) Sign MOUs with Four International 
Financial Institutions to Join the Primary Dealers 
Program of the Government Local Debt Instruments 
Coinciding with the Future Investment Initiative 
conference, held in Riyadh between the 26th and 28th of 
October 2021, the Ministry of Finance and NDMC signed 
four memorandums of understanding with BNP Paribas, 
Citi, Goldman Sachs and J.P Morgan that aim to explore 
the possibility of joining the Primary Dealers' Program of 
the government local debt instruments. The MOUs were 
signed by H.E. Abdulaziz AlFuraih, Chairman of the 
Steering Committee at the Ministry of Finance, Mr. Hani 
AlMedaini, acting CEO of NDMC and representatives of the 
financial institutions. 
H.E. AlFuraih commented this step forward is an 
attestation of the efforts towards achieving the 
objectives of "Saudi Vision 2030" by expanding the 
investor base in the local primary market to secure the 
Kingdom's domestic debt financing needs and the goals of 
the strategy of the financial sector development 
program. Additionally, this step aims to support the 
development of the secondary market by increasing 
liquidity of government local debt instruments and 
attracting more foreign capital, in collaboration with the 
NDMC. His Excellency also highlighted that the Ministry of 
Finance seeks to support the development of the financial 
system as part of its strategic mission to support and 
develop the private sector in alignment with the 
objectives of the " Saudi Vision 2030. 
The National Debt Management Center Announces the 
Completion of 2021 Borrowing Plan Exceeding SAR 
125bn 
HE Mohammed bin Abdullah Al-Jadaan, the Minister of 
Finance and Chairman of the Board of Directors of the 
National Debt Management Center (NDMC), announced 
the conclusion of the annual borrowing plan proposed by 
NDMC for the year 2021, with financing amount around 
SAR 125 billion. The plan is part of the public debt 
strategy adopted to meet the financing needs, and seize 
the opportunities available in local and global markets, 
and manage potential risks. 
Al-Jadaan highlighted that NDMC's board of directors has 
approved the proposal of the annual borrowing plan at 
the beginning of the year. The plan covered the financing 
needs by issuing debt instruments for about SAR 125bn, 
including Sukuk and bonds, which focused on fixed-rate 
instruments to hedge against risks of potential interest 
rate fluctuations. Al-Jadaan indicated that NDMC 
succeeded in arranging the issuance of sovereign bonds 
worth EUR 6.8bn, with the largest negative yield issuance 
ever outside of the EU, with a coverage ratio of 3.3 times 
(equivalent to 11.3bn euros) of the total issuance, which 
displays the leading position of the Kingdom in global 
markets. On another front, NDMC successfully arranged 
for financing of USD 3bn provided by Korea Trade 
Insurance Corporation 
(KSURE) 
earlier 
this 
year. 
Additionally, NDMC arranged as well the second early 
repurchase of part of bonds and sukuk maturing next year 
(2022) of a value exceeding SAR 33 billion.  
Monshaat Participates in First Annual Gulf Forum for 
Business Entrepreneurs in Oman 
The first edition of the Annual Gulf Forum for Business 
Entrepreneurs started in the Sultanate of Oman under the 
theme “Future Horizons for Business Entrepreneurship in 
Gulf Cooperation Council Countries”, with the aim of 
stimulating small and medi