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Monday, 24 July 2017

Saudi Arabia Sells Domestic Debt for First Time in 2017 - Bloomberg

Saudi Arabia Sells Domestic Debt for First Time in 2017 - Bloomberg:

"Saudi Arabia, the Arab world’s biggest economy, started the sale of its first riyal-denominated debt in 10 months, according to people with knowledge of the matter.

The kingdom’s three-part Islamic offering consists of bonds priced between 2.9 to 3 percent for five-year debt, 3.25 to 3.35 percent for seven-year notes and 3.55 to 3.65 percent for a 10-year issue, the people said, declining to be identified because the information isn’t public. Investors have until Monday to submit bids, they said, with one person adding that Saudi Arabia plans to raise as much as 25 billion riyals ($6.67 billion).

The sale comes as lower oil prices and austerity measures weigh on Saudi Arabia’s economy. Gross domestic product contracted in the three months through March for the first time since 2009 -- illustrating the scale of the challenge facing the country’s new heir, Crown Prince Mohammed bin Salman, as he implements his blueprint for a transition away from oil dependency. The government, which said on Sunday it started a local sukuk program of unlimited size, raised $9 billion from its inaugural sale of international Islamic bonds this year."

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