The Capital Market Authority (the CMA) approved on 3 March 2022CE amendments to the Rules on the Offer of Securities and Continuing Obligations (the ROSCOs). The amendments include new requirements relating to the private placement of debt instruments.
For debt instruments issued by a Saudi Arabian company (or a special purpose entity sponsored by a Saudi Arabian company), and which are Saudi Riyal denominated:
The debt instruments must be deposited with the Depository Center Company (Edaa). This requirement was previously contained in a CMA circular widely circulated between stakeholders, but has now been included clearly in the ROSCOs.
The financial adviser arranging the issuance must make a public announcement on the Saudi Exchange’s website after completion of the issuance, in the form to be set by the CMA.
These amendments come as part of the CMA’s efforts to enhance the Saudi Arabian capital markets for issuers and investors, and to provide better access to capital for companies.
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