Latest news with #debtinstruments
Zawya
28-07-2025
- Business
- Zawya
The CMA approves an incentive measure to support credit-rated debt instruments
The Capital Market Authority's (CMA's) Board approved an incentive measure for public offerings of debt instruments, granting priority in the review of public offering applications to issuers or issuances that have obtained a credit rating from a CMA-licensed credit rating agency. This measure will remain in effect until the end of 2026. This initiative comes as part of the CMA's commitment to enhancing the efficiency and transparency of the debt instruments market and supporting its role as a primary source of business financing and economic growth. It also aims to encourage issuers of publicly offered debt instruments to obtain credit ratings to broaden investor participation and strengthen the market's depth and efficiency. This measure forms part of the CMA's strategy to deepen the Saudi capital market and enhance its attractiveness and transparency, in line with the objectives of Saudi Vision 2030 to diversify funding sources and promote financial sustainability. A credit rating is not merely an indicator of the issuer's creditworthiness; rather, it serves as an effective tool enabling investors to make well-informed investment decisions. Through this measure, the CMA aims to build a more mature and stable debt instruments market with a diversified investor base and strengthened confidence among all participants. It also seeks to expand the investor base by enabling them to assess the risks of investing in publicly offered debt instruments, in addition to accelerating the review procedures by the CMA. This measure is expected to enhance companies' access to the debt instruments market to meet their financing needs, stimulate the number of issuances, and increase the attractiveness of offerings to investors. A credit rating facilitates the financial advisor's ability to market the offering, particularly to institutional and qualified investors who rely on such ratings in their investment decisions. A credit rating is defined as a forward-looking opinion on credit risk, which reflects the likelihood of issuers defaulting on their financial obligations in the short or long term, as well as the potential severity of financial losses for creditors in the event of default. Issuers use credit ratings to signal their creditworthiness and attract investors, while investors rely on them to support their credit analysis of issuers and debt instruments.
Arab News
27-07-2025
- Business
- Arab News
Saudi Arabia taps French bank to expand local debt market
RIYADH: The Saudi Ministry of Finance and the National Debt Management Center have signed an agreement appointing France's Societe Generale as a primary dealer for the Kingdom's local debt instruments, according to an official statement. Societe Generale will join five other international institutions already operating as primary dealers, namely BNP Paribas, Citigroup, and Goldman Sachs, as well as J.P. Morgan, and Standard Chartered Bank. As part of ongoing efforts to deepen and diversify its domestic debt market under Vision 2030, the Ministry of Finance and the NDMC have taken new steps to strengthen the role of international and local institutions in supporting sukuk and bond issuance. 'This agreement fits within the Financial Sector Development Program strategy as a step toward achieving the objectives of Saudi Vision 2030 by strengthening financial sector institutions and advancing the financial market,' NDMC stated. The NDMC stated that the deal reaffirms its role in enhancing access to local debt markets by diversifying the investor base. This approach aims to ensure sustainable access to the secondary market and support its growth. 'It is noteworthy that applications for subscription in the primary market for the government's local debt instruments are submitted to the NDMC through the appointed primary dealers on a scheduled monthly basis where these dealers receive the applications submitted by investors,' the statement said. The French bank will also be added to the list of 10 local institutions participating in the program, including Saudi National Bank, Saudi Awwal Bank, and AlJazira Bank, as well as Alinma Bank, AlRajhi Bank, Albilad Capital, AlJazira Capital, AlRajhi Capital, Derayah Financial Co., and Saudi Fransi Capital. The Kingdom's sukuk market has witnessed significant growth in recent years, underpinned by its strategic role in the Kingdom's Vision 2030 economic diversification plans. In the first quarter of 2025, corporate bond and sukuk issuance more than doubled to $37 billion, up from $15.5 billion in the same period of 2020. Saudi Arabia accounted for more than 60 percent of all sukuk and bond issuance across the Gulf Cooperation Council during that period, according to the Kuwait Financial Center, also known as Markaz. The NDMC surpassed the $1 billion threshold with its May sukuk issuance, raising SR4.08 billion ($1.08 billion)—a 9.09 percent increase from April and a 54.5 percent rise compared to March's SR2.64 billion. In June, the NDMC raised SR2.355 billion, marking a decline from May but demonstrating typical monthly funding fluctuations. The July issuance rebounded sharply to SR5.02 billion, an increase of 113.6 percent month on month. That issuance was split into tranches maturing in 2029, 2032, 2036, and 2039. According to S&P Global, the Kingdom's domestic debt markets are expected to expand further amid Vision 2030 reforms, with sovereign and corporate issuance at 20.7 percent of gross domestic product and corporate debt alone rising from 1.9 percent in 2020 to 3.4 percent in early 2025.
Bloomberg
17-07-2025
- Business
- Bloomberg
Senator Warren Asks Ratings Firms How They Assess Private Credit Risk
Senator Elizabeth Warren asked US Treasury Secretary Scott Bessent and various ratings agencies for more information on risks posed by the $1.7 trillion private-credit industry. In the letter to ratings firms including S&P Global Inc., Moody's Ratings and Fitch Ratings, the Massachusetts Democrat expressed concern that some companies may be 'inflating' ratings of private debt instruments, which could pose risks to the larger financial system.
Asharq Al-Awsat
04-06-2025
- Business
- Asharq Al-Awsat
Qatar's Budget Registers Deficit in Q1, First Since 2020
Qatar, the world's second-largest LNG exporter, recorded on Tuesday a budget deficit of 529 million riyals ($145.3 million) in the first quarter of 2025, marking the country's first deficit since 2020. Qatar achieved a budget surplus of 2 billion riyals ($548.9 million) in the first quarter of 2024 and a surplus of 930 million riyals ($255 million) in the fourth quarter of 2024. In a statement on the X platform, the Finance Ministry said the deficit was covered through debt instruments. Qatar expected a budget deficit of 13.2 billion riyals for 2025, while the total expected revenues for the 2025 fiscal year budget was estimated at 197 billion riyals with an average oil price of $60 per barrel. 'Total revenue in the quarter stood at 49.4 billion riyals ($13.57 billion), down 7.5% from the same quarter last year,' the Ministry said on Tuesday, noting that these revenues comprised 42.5 billion riyals in oil and gas revenues and 6.9 billion riyals in non-oil revenues. The Ministry statement further noted that total public expenditure during the first quarter of 2025 amounted to roughly 49.9 billion riyals, registering a 2.8% decline compared to the first quarter of 2024. The expenditure was allocated as follows: 16.9 billion riyals for salaries and wages, 18.5 billion riyals for current expenditures, 13.1 billion riyals for major capital expenditures, and 1.2 billion riyals for minor capital expenditures. The statement highlighted that the total value of government procurement contracts executed through tenders and auctions by public entities during the first quarter of 2025 amounted to approximately 6.4 billion riyals. Contracts awarded to foreign companies totaled around 1.5 billion riyals, marking a 50% increase compared to the first quarter of 2024. Overall, the Ministry stated that the top four sectors according to the Business Activity Index during the first quarter of 2025 were municipality and environment, health, energy, and the General Secretariat of the government.
