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21 January 2020
MARKETS

Saudi Arabia mulls triple-tranche dollar bond issuance

Saudi Arabia’s fixed-income assets have been more resilient than those elsewhere in the region following the escalation of the US-Iran tension

Saudi Arabia last sold Eurobonds in October 2019, when it raised a $2.5 billion Sukuk/Bloomberg

by Bloomberg

Saudi Arabia has started the sale of a three-part dollar-denominated bond issuance as the Kingdom is taking advantage of low borrowing costs globally and looking to plug part of its growing budget deficit by issuing around $32 billion of external debt over the course of the year.

The world’s largest oil exporter has opened books for the issuance with an initial price guidance of about 110 basis points over US treasuries for the seven-year offering, roughly 135 basis points for a 12-year security and 180 basis points for a 35-year bond.

Citigroup, Morgan Stanley and Standard Chartered have been appointed as global coordinators and joint lead managers while BNP Paribas, HSBC Holdings, JPMorgan Chase & Co. and NCB Capital are also passive joint lead managers.

Saudi Arabia’s sovereign dollar bonds have gained 0.6 per cent in 2020, more than those of any other country in the GCC. The Kingdom last sold Eurobonds in October 2019, when it raised a $2.5 billion Sukuk.

In December 2019, Fahad Al-Saif, the Head of Saudi Arabia’s Debt Management Office, said that the country would probably soon return to global debt markets. The Kingdom issued $13.4 billion of euro and dollar bonds last year, more than any other emerging market aside from Turkey.

Saudi Arabia last sold Eurobonds in October 2019, when it raised a $2.5 billion Sukuk.

In December 2019, Fahad Al-Saif, the Head of Saudi Arabia’s Debt Management Office, said that the country would probably soon return to global debt markets. The Kingdom issued $13.4 billion of euro and dollar bonds last year, more than any other emerging market aside from Turkey.


RELATED STORIES: Standard Chartered Morgan Stanley Citigroup Saudi Arabia geopolitical tensions Sukuk


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