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Monday, 17 October 2016

IFR Capital Markets Week Ahead - October 17, 2016 | Reuters

IFR Capital Markets Week Ahead - October 17, 2016 | Reuters:

"Saudi Arabia is widely expected to launch its first-ever international bond sale once a week-long investor roadshow comes to a close on Tuesday. A collapse in oil revenues has already pushed the kingdom into taking out a US$10bn bank loan and the debt sale will open up another source of funding for Riyadh to fill its gaping fiscal hole, which at US$97bn last year - some 18% of GDP - was one of the largest in the world.

Citigroup, HSBC and JP Morgan are leading the three-tranche deal of five, 10 and 30-year paper. And it could be a big one: Argentina's US$16.5bn bond sale earlier this year illustrated just how much demand there is for emerging market sovereign exposure, and Saudi will be keen to tap into that. But, with plans to become a regular issuer, Riyadh might be wise not to fill its boots all at once. "

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