Font Size
Share this article


Print Friendly Version
23 October 2019
SUKUK

Saudi Arabia issues $2.5 billion 10-year Sukuk

Emerging-market sovereign borrowers are returning to debt markets as stimulus from major central banks causes a hunt for higher yields among global investors.

Shutterstock/Jiri Flogel


Saudi Arabia issued $2.5 billion Sukuk as the world’s biggest oil exporter takes advantage of borrowing costs that are around the lowest in four years, reported Bloomberg.

The Kingdom set initial price guidance for a 10-year Sukuk at between 145 basis points and 150 basis points over the benchmark midswap rate. Saudi Arabia’s $4 billion of securities due in April 2029 closed at a spread of 125 basis points on 21 October 2019.

The issuance comes less than a week after oil giant Saudi Aramco delayed its planned initial public offering, following the 14 September 2019 drone strikes on the state-owned energy company’s key oil facilities, which briefly halved its output.

The Kingdom has already raised $10.9 billion of Eurobonds this year, and the new deal will complete its funding requirements on international markets.

Saudi Arabia planned to issue about $32 billion in local—and foreign-currency debt this year to fund its budget deficit.

JPMorgan Chase & Co., Standard Chartered and Aljazira Capital are managing the Sukuk issuance.

Saudi Arabia is preparing to host international investors next week for its Future Investment Initiative—an annual festival to showcase the Kingdom’s aspirations and which has been dubbed Davos in the Desert.

 

 


RELATED STORIES: SUKUK SAUDI ARAMCO JPMORGAN CHASE & CO. STANDARD CHARTERED ALJAZIRA CAPITAL FUTURE INVESTMENT INITIATIVE

BRANDS MAGAZINES LATEST EDITION


CPI Financial was established in Dubai in 1999 to meet the needs of an ever-expanding financial community, offering a comprehensive portfolio of market-leading products and services tailor-made for the banking and financial services sectors.


Subscribe to our News Letter

Subscribe

© 2019 CPI Financial. All rights reserved.

No part of this website may be reproduced or used in any form of advertising without prior permission in writing from the editor.