Thursday 27 August 2020

FTSE Russell launches local currency #Saudi government bond index | ZAWYA MENA Edition

FTSE Russell launches local currency Saudi government bond index | ZAWYA MENA Edition:

Global index provider FTSE Russell said on Thursday it had launched a bond index for Saudi Arabia to measure the performance of fixed-rate, local currency government bonds, a move which could lead to new inflows to the Saudi market.

The FTSE Saudi Arabian Government Bond Index will cover sukuk and non-sukuk government bonds with at least one year to maturity and a minimum amount outstanding of 1 billion riyals ($266.65 million). Sukuk are Islamic bonds.

Riyadh's government bond market will be reviewed by FTSE Russell in its Fixed Income Country Classification review next month, which could lead to an inclusion of Saudi domestic bonds in the FTSE Emerging Markets Government Bond Index (EMGBI).

As of July 31, 2020, 45 Saudi securities with a total market value of 273.2 billion riyals ($72.9 billion) were eligible for inclusion in the index, according to the FTSE statement.

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