Riyadh: The Ministry of Finance and the National Debt Management Center (NDMC) have signed an agreement with Societe Generale Bank, appointing it as a primary dealer in the government's local debt instruments. This move signifies a strategic partnership aimed at bolstering the management of the Kingdom's financial assets and liabilities.
According to Saudi Press Agency, this development increases the number of international financial institutions in the primary dealers program to six. The other international institutions include BNP Paribas, Citigroup, Goldman Sachs, J.P. Morgan, and Standard Chartered Bank. In addition, the program features ten local financial institutions, which are Saudi National Bank (SNB), Saudi Awwal Bank (SAB), AlJazira Bank, Alinma Bank, AlRajhi Bank, Albilad Capital, AlJazira Capital, AlRajhi Capital, Derayah Financial Company, and Saudi Fransi Capital.
The agreement is aligned with the objectives of Saudi Vision 2030 under the Financial Sector Development Program (FSDP). It aims to empower financial institutions and develop an advanced capital market. Moreover, it underscores the NDMC's role in enhancing access to local debt markets by diversifying the investor base. This ensures sustained access and supports the development of the secondary market, thereby contributing to the broad objectives of economic diversification and financial stability.
Applications for subscription in the primary market for the government's local debt instruments are submitted to the NDMC through the appointed primary dealers. These applications are processed on a scheduled monthly basis, with primary dealers responsible for receiving and managing submissions from investors.