Tuesday 22 October 2019

#SaudiArabia Comes Back to Bond Market With a $2.5 Billion Sukuk - Bloomberg

Saudi Arabia Comes Back to Bond Market With a $2.5 Billion Sukuk - Bloomberg:

Saudi Arabia is seeking to raise $2.5 billion of Islamic bonds as the world’s biggest oil exporter takes advantage of borrowing costs that are around the lowest in four years.

The kingdom’s government set initial price guidance for a 10-year sukuk at between 145 basis points and 150 basis points over the benchmark midswap rate, according to a person familiar with the deal who asked not to be identified because the information is private. Saudi Arabia’s $4 billion of securities due in April 2029 closed at a spread of 125 basis points on Monday, according to data compiled by Bloomberg.

The sale comes less than a week after oil giant Saudi Aramco delayed its planned initial public offering. That followed last month’s drone and missile strikes on Aramco’s 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, according to the person.

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