Saudi Arabia sold local bonds worth 6.075 billion riyals ($ 1.62 billion) for 10 years and 15 years, the longest maturity period for a public debt offered domestically by the kingdom.
Saudi Arabia began issuing local currency bonds in monthly bids in mid-2015 to help cover the huge budget deficit due to falling oil prices.
The kingdom suspended these issues in late 2016 after banks had difficulty absorbing this volume of debt. Riyadh moved to borrow from abroad, but returned to launch monthly sukuk issues in mid-2017.
The Finance Ministry said on Tuesday it had issued sukuk worth more than 6 billion riyals, spread over two tranches for 10 years and 15 years, worth 2.395 billion riyals and 3.680 billion riyals, respectively.
The Saudi Ministry of Finance's Department of Finance said the longer term "may be used to support and finance long-term projects such as infrastructure projects, mortgage lending and others."
More debt
Last year, the Saudi bourse began listing local government bonds to facilitate riyal issuance by encouraging secondary market trading.
Saudi Arabia plans to borrow 118 billion riyals ($ 31 billion) this year to cover part of its projected budget deficit of 131 billion riyals.
Saudi public debt rose to SR 560 billion ($ 149.3 billion) at the end of 2018, representing 19.1 percent of GDP, compared to 443 billion riyals ($ 118.13 billion), or 17.2 percent of 2017.
The public debt is expected to rise to $ 180 billion next year, equivalent to 22 percent of GDP.
This comes as Saudi Arabia, the world's largest oil exporter, is suffering from a drop in crude oil prices in 2014.
Moody's analysts expect the average price of oil to reach $ 62 per barrel in 2019 and 2020, compared to $ 71 in 2018, which will increase the credit challenges of the Gulf Cooperation Council countries, especially Saudi Arabia.