Different
types of
bonds
Saudi Government
Bonds include
the following:
Fixed Coupon Bonds They are issued in minimum denominations of SAR one million and multiples thereof.
Bonds are issued in maturities from 2 to 10 years.
Interest is paid semi-annually.
A-
Primary:
they are
issued by
SAMA monthly
(second
sunday of
the English
month).
B-
Secondary:
they may
be purchased
or sold
through
the bank
after SAMA
issuing
dates. They
may be purchased
with maturities
from 1 month
to 10 years.
Short selling
not permitted,
therefore
the bonds
must be
sold from
inventory
Floating Rates Notes
Issued by SAMA at SIBOR three months plus margin in favor of customer. Issues may be purchased for 5 or 7 years. The issue time is the fourth week of the month.
Treasury Bills
These are debt instruments with a maturity of twelve months or less (one week, one month, 3 months, 6 months and 12 months) issued by SAMA. Treasury Bills are issued in discount form. The difference between the price paid and the repayment price is the interest earned on the Treasury Bill.
Earnings
on Government
bonds
Earnings are estimated to be equivalent to the projected earnings on Government Development Projects.
The coupon will be fixed at the issue date and will be valid for the period the bonds are outstanding.
The customer will get the SAMA price for primary issues limit of one million (multiples of million) with fees payment (changes), for secondary, the price is based on market yield and time to maturity.
There are minimum fees for holding the bonds in custody
You can
apply for
Saudi Government
Bond at
any Riyad
Bank branch
or call
one of the
following
numbers:
800 -124-
4441 (toll-free)
or 966 -1-
401-4400
or fax us
at 404-1096
