Ministry of Finance announces launch of Primary Dealers Program

July 26, 2018

RIYADH — The Debt Management Office (DMO) of the Ministry of Finance announced that the first edition of the Primary Dealers Program for Sukuk distribution has taken place on Sunday (July 22) under the (Saudi Arabian Government SR-denominated Sukuk) program, Saudi Press Agency (SPA) said on Wednesday night .

The issuance took place as per best industry standards via an electronic auction platform that enabled over 20 investors from participating financial institutions and various asset managers to submit bids for both their proprietary books and on behalf of their customers.

The five participating financial institutions appointed as primary dealers are as follows: Alinma Bank, Bank Aljazira, Samba Financial Group, The National Commercial Bank, and The Saudi British Bank. This group of banks represents a Public-Private Partnership based on experience, professionalism and advanced capabilities, in order to develop the Debt Capital Markets of Saudi Arabia.

The main duties of the primary dealers are the expansion of the investor base in their capacity in the primary market, in addition to their central role in market-making and providing two-way pricing for all issuances under the Saudi Arabian government SR-denominated Sukuk Program in the secondary market going forward.

This process would immediately commence following every issuance. Market-making will play an active role in stimulating the financial markets as a whole and significantly increasing the liquidity in the secondary market.

The Primary Dealers Program fits within the strategy of the Financial Sector Development Program (FSDP) that encompasses various goals, one of which is enabling financial institutions to increase the growth of the private sector via the development of the financial markets.

The Ministry of Finance has a strategic goal of supporting and developing advanced financial markets in the Kingdom via the integration of both the public and private sectors as part of its commitment to Vision 2030. – SPA

July 26, 2018
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