Premia launches first Saudi Arabia government Sukuk ETF in Asia for allocators looking for efficient tool to access investment grade sukuk or EM fixed income securities

HONG KONG,May 29, 2025/PRNewswire/ -- In partnership with  BOCHK Asset Management Limited (BOCHKAM), Premia Partners, the leading homegrown ETF provider fromHong Kong, announces listing ofPremia BOCHK Saudi Arabia Government Sukuk ETF (the ETF) on29 May 2025on HKEx.

AsAsia'sfirst investment grade government sukuk ETF, thephysical replicatedETF is designed to provide investors with direct access to government sukuk denominated in Saudi Riyal or US Dollar issued by theSaudi Arabiagovernment or government agencies, withtotal expense ratio (TER) of 0.35% p.a. only.

  • Premia BOCHK Saudi Arabia Government Sukuk ETF(Tickers: 3478.HK (HKD distribution class)/ 9478.HK (USD distribution class)) tracks the iBoxx Tadawul Government& Agencies Sukuk Index.



  • Covering only Sukuk instruments issued by Saudi Arabian government or its agencies, with a stable A-rated sovereign issuer rating by major international agencies, the strategy reflects the robust oil reserves, low government debt level and vibrant economic development ofSaudi Arabiaunder the Vision 2030 Strategic Plans.



  • The ETF offers stable income and attractive yield, as well as diversification benefits given its low correlations with other bonds and major asset classes.

"The launch of this ETF is a significant milestone and cumulation of a year-long preparation in our efforts to build an efficient tool for international allocators looking for diversification from investment grade emerging markets and shariah-compliant fixed income solutions,"saidRebecca Chua, Managing Partner of Premia Partners."It is a particularly timely strategy in the current market environment, as allocators increasingly look to values from more diversified allocation and uncorrelated returns.'

Li Tong, Deputy Chief Executive of BOCHK and Chairman of BOCHKAM, said:"BOCHKAM is pleased to collaborate with Premia Partners to launch theAsia'sfirst Saudi Arabic Government Sukuk ETF. This fund combines the flexibility and transparency of an ETF with the features of Islamic finance, providing investors with convenient access toSaudi Arabia'scapital market. BOCHKAM will continue to foster collaboration with theMiddle Eastand other markets by developing more globally-diversified asset allocation solutions, contributing our efforts to strengthenHong Kong'sposition as a global asset management centre."

Leveraging its capabilities in bothAsiaandMiddle East, HSBC will provide a range of trustee, global custody and fund administration services forPremia BOCHK Saudi Arabia Government Sukuk ETFin bothHong Kongand Saudi Arabia. Commenting on the launch,Faris AlGhannam, Chief Executive Officer and Board member, HSBC Saudi Arabia, said:"ETFs have become a key tool for asset managers tapping into the emergingMiddle East-Asiainvestment corridor. This landmark transaction reflects the sustained demand among foreign investors for access toSaudi Arabia'seconomic transformation and the Kingdom's debt capital markets. As the leading international bank with the deepest asset servicing capabilities in bothHong KongandSaudi Arabia, we are proud to have enabled Premia to launch thePremia BOCHK Saudi Arabia Government Sukuk ETF."

Mr.Mohammed Al-Rumaih, CEO of the Saudi Exchange, said:"The issuance of this ETF on HKEX marks a significant milestone in our ongoing efforts to provide global investors with access to the Saudi market and enhance portfolio diversification worldwide. This ETF, tracking the iBoxx Tadawul Government& Agencies Sukuk Index (SAR Unhedged) TRI, offers global investors a unique opportunity to access high-quality government-issued sukuk."

"S&P Dow Jones Indices is delighted to license the iBoxx Tadawul Government& Agencies Sukuk Index to Premia Partners for this new ETF launch. The index provides market participants with a benchmark that focuses on shariah-compliant funding obtained by theSaudi Arabiagovernment and its key organizations through sukuk issuances. AsSaudi Arabiadiversifies its economic base and fosters growth within the domestic debt market, the index is designed to encompass shariah-compliant sukuk issuances to support the kingdom's Vision 2030 initiatives,"saidKangwei Yang, Director of Fixed Income Product Management at S&P Dow Jones Indices.

About Premia Partners

Founded in 2016, Premia Partners is a leading ETF manager fromHong Kong, dedicated to building low-cost, efficient, best practice ETFs forAsia. As ofMay 29th2025, Premia Partners manages 12 equity and fixed income ETFs designed as low-cost, efficient allocation tools forAsia. For more information on Premia or Premia ETFs coveringChina,Emerging ASEAN,Asia Metaverse/ Innovative Technology,Vietnam,Taiwan,Chinahigh yield bonds,Chinagovernment bond,Asia USD investment grade bonds,US TreasuryandSaudi Arabia Government Sukuk, please visitwww.premia-partners.com

CisionView original content:https://www.prnewswire.com/apac/news-releases/premia-launches-first-saudi-arabia-government-sukuk-etf-in-asia-for-allocators-looking-for-efficient-tool-to-access-investment-grade-sukuk-or-em-fixed-income-securities-302467459.html

SOURCE Premia Partners