​​​The Capital Market Authority (“CMA") called upon relevant and interested persons participating in the capital market to share their feedback on the Proposed Regulatory Enhancements for the Offering of Debt Instruments (“Draft") for Public Consultation for a period of thirty (30) days ending on 04/02/1446 AH, corresponding to 08/08/2024.

The draft aims to develop the regulatory framework for issuing debt instruments in the Kingdom by easing issuance requirements. This will help expedite the financing process for issuers through the sukuk and debt instruments market and reduce the cost of issuance, encouraging the issuance of sukuk and debt instruments. This initiative is expected to enhance the activation of this market as one of the main channels for financing business and the economy.

The main elements of the draft include adding the issuance of debt instruments by the Kingdom's developmental funds, banks, and sovereign funds as part of the exempted issuance cases, detailing the requirements that need to be met. This will help attract a diverse range of issuers and issuances, thereby deepening the sukuk and debt instruments market and diversifying investment in it.

The proposed draft will also help expedite the access of sukuk and debt instruments issuers to the market to meet their financing needs by developing the regulations governing the private offering of debt instruments by easing the notification requirements to the Authority and the notification period.

According to the draft, the proposed aspects for public offerings of debt instruments include developing the regulatory rules, such as easing the requirements for submitting a registration and offering application for debt instruments, and simplifying the requirements for preparing a prospectus for debt instruments. The regulations governing the public offering of debt instruments have been outlined in a separate chapter to enhance the clarity of regulatory requirements for offering sukuk and debt instruments.

The proposed draft also provides additional facilities for listed companies wishing to publicly offer sukuk and debt instruments, including providing a new disclosure mechanism in the prospectus, which will accelerate the process of meeting the conditions and requirements.

“The Proposed Regulatory Enhancements for the Offering of Debt Instruments" is part of CMA's efforts to develop the sukuk and debt instruments market. This initiative aims to meet the financing needs of companies and diversify their financing sources, thereby contributing to the growth of the national economy.

The Authority emphasized that the comments of relevant and interested persons shall be taken into full consideration for the purpose of finalizing the Draft. Opinions and comments can be received through any of the following:

• The Unified Electronic Platform for Consulting the Public and Government Entities (Public Consultation Platform), affiliated with the National Competitiveness Canter through the following link: (istitlaa.ncc.gov.sa​​).
• The prescribed form through the following email: (Laws.Regulations@cma.org.sa)