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.

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Private Placement

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:

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­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.

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­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.

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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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