Saudi CMA moves to improve debt issuance governance for SPEs
SPEs, established and licensed by the CMA, are independent financial and legal entities created for specific financing purposes, dissolving once their objectives are met.
The CMA's newly proposed amendments seek to expand the range of eligible issuers while ensuring alignment with existing regulations.
The changes would also enable SPEs to offer debt instruments through exempt offerings, complementing the existing public and private issuance frameworks.
This move aligns with the regulator's goals of developing the sukuk and debt instruments market while supporting the growth of the asset management industry.
'The draft will also support the deepening of the sukuk and debt instruments market and the diversification of issuances by expanding the range of debt issuers through Special Purpose Entities, which in turn will contribute to enhancing liquidity and creating new investment opportunities,' the CMA said in a statement.
SPE adoption has surged in recent years, with the number of entities more than doubling from 464 in 2018 to 945 by the end of 2024.
The newly released CMA draft reveals that among the amendments aimed at broadening the scope of issuers is the authorization for SPEs to conduct securitization transactions.
It also aims to streamline governance by clarifying the responsibilities of directors and fund managers within an entity's by-laws, particularly for funds structured as SPEs.
Additionally, the reforms aim to strengthen SPE governance by requiring that the trustee be a legal entity, enhancing provisions for trustee removal, ensuring board members' independence from the sponsor and originator, and simplifying the entity's dissolution procedures.
Earlier this week, the CMA proposed easing investor criteria for Nomu, the Kingdom's parallel market, to expand participation and enhance liquidity.
The amendments included reducing the minimum transaction requirement for individual investors from SR40 million ($8 million) to SR30 million over a 12-month period while eliminating the quarterly trading activity requirement.
Additionally, under the new regulations, board and committee members of Nomu-listed companies would qualify as eligible investors.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Argaam
2 hours ago
- Argaam
Signworld issues prospectus to float 1.5M shares on Nomu
National Signage Industrial Co. (Signworld) issued today, July 27, the prospectus to float 1.5 million shares, or 20% of capital, on the Nomu -Parallel Market. The company will offer 1.5 million shares, equal to 25% of pre-offering and 20% of post-offering capital, to qualified investors. For More IPOs The share sale will run from Aug. 17-24. The Capital Market Authority (CMA) approved, in March, the company's application for direct listing on Nomu. Signworld's core business involves the design, manufacturing, and assembly of electronic panels and displays for various applications, in addition to installation and maintenance services. It operates through three branches. Company Profile Company National Signage Industrial Co. (Signworld) Core Activities Manufacturing and sale of feed products Market Nomu-Parallel Market Pre-IPO Capital SAR 60mln Number of Shares 6 mln Post-IPO Capital SAR 75 mln New Number of Shares 7.5 mln Nominal Value SAR 10 a share IPO Summary Issue Percentage 20% of post-IPO capital, 25% of pre-IPO capital Offered Shares SAR 1.5 mln IPO Minimum Limit 10 shares IPO Maximum Limit 374,990 shares Offer Period Aug. 17-24, 2025 Final Allocation Aug. 27, 2025 Surplus Refund (If any) Aug. 31, 2025 Company Shareholders Shareholders Before IPO After IPO Number of Shares (mln) Ownership (%) Number of Shares (mln) Ownership (%) Al Mohandes Holding Group 6.00 100.00 % 6.00 80% Qualified investors -- -- 1.50 20% Total 6.00 100 % 7.50 100%
Argaam
3 hours ago
- Argaam
CMA to prioritize rated debt offerings under new incentive plan
The Capital Market Authority (CMA) approved a new incentive to fast-track public debt offering applications for issuers or instruments rated by a CMA-licensed credit agency, with the measure effective through end-2026. The CMA said the move aims to boost efficiency and transparency in the debt market, strengthen its role in business financing and growth, and encourage rated issuers to widen investor participation and deepen the market. The initiative supports the CMA's broader strategy to deepen the Saudi capital market, enhance transparency and appeal, and aligns with Vision 2030 goals to diversify funding sources and boost financial sustainability. The CMA stressed that credit ratings are more than creditworthiness indicators, they are essential tools for enabling investors to make informed decisions based on clearer risk assessments. By fast-tracking rated offerings, the CMA aims to develop a more stable and mature debt market, broaden the investor base, strengthen market confidence, and support better risk assessment of listed instruments. The CMA expects the move to ease corporate access to debt markets, boost issuance volume, and enhance offering appeal, noting that credit ratings help financial advisors market deals, particularly to institutional and qualified investors. Credit ratings provide forward-looking assessments of credit risk, indicating default likelihood and potential creditor losses. Issuers use them to demonstrate credit strength and attract investors, while investors rely on them for credit analysis and debt evaluation.
Argaam
12-07-2025
- Argaam
CMA Chairman: GCC residents can now invest in Saudi market
Residents of the GCC countries can now invest in the Saudi market, said Mohammed Elkuwaiz, Chairman of the Capital Market Authority (CMA). This announced followed the Saudi market regulator's approval for amendments to investment account regulations that allow current GCC residents, and those who previously resided in Saudi Arabia or other GCC countries, to directly invest in the Saudi main market. Elkuwaiz said: 'As the new amendments are approved, Gulf residents — or those who have previously lived in the Kingdom or the GCC — can continue investing in the Saudi financial market even after returning to their home countries.' This step enhances the market's openness to foreign investors, while building long-term investment relationships with a broader range of investors around the world, within a more flexible and attractive regulatory framework, he added.
