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Wednesday, 19 October 2016

Saudi Arabia takes orders for first international bond sale

Saudi Arabia takes orders for first international bond sale:

"Saudi Arabia has begun taking orders for its first international bond sale, as the kingdom turns to debt markets to help ease a fiscal squeeze from the two-year slump in oil prices.

Initial price guidance for the dollar-denominated bonds — one of the most keenly awaited issues this year — splits the sale into three maturities, with a new five-year bond offered at a yield 160 basis points above equivalent US government bonds, while the benchmark 10-year bond comes with a 185 basis point premium. Longer-dated 30-year debt is being offered with a yield 235 basis points above US Treasuries.

The rates put the country’s benchmark borrowing rate at about 3.6 per cent — 50 basis points above rates in neighbouring Qatar, which has a higher credit rating — and tallies with investor expectations."

'via Blog this'