Demand for the new issuance, due in 2049, is equivalent to around $2.47bn, according to Saudi Arabia's Debt Management Office
The debt management office at the Saudi Ministry of Finance has announced a debut riyal-denominated sukuk issuance with a 30 year maturity.
According to the Saudi Press Agency, the ministry said that the sukuk would be valuable for long-term financing pricing in the kingdom and that it will support infrastructure projects, as well as public and private sector debt issuances.
The issuance is also "expected to be a reference point to price mortgage and savings products by having it as a risk-free point on which price models are based on", the ministry said.
It added that it will also provide new investment products for the local market creating a new investor base such as pension funds, endowments, and insurance companies.
The kingdom began offering local currency bonds in monthly auctions in mid-2015 to help cover a wide budget deficit caused by low oil prices.
It suspended those issues in late 2016 but launched monthly sukuk issues in mid-2017.
Demand for the new issuance, due in 2049, is equivalent to around SR9.25 billion ($2.47 billion), the Debt Management Office added.