#SaudiArabia Unlikely to Exceed Borrowing Plan After Bumper Sale - Bloomberg

Saudi Arabia Unlikely to Exceed Borrowing Plan After Bumper Sale - Bloomberg:

Saudi Arabia may raise an additional $4 billion in international bonds this year, in line with its original plan, after the kingdom managed to reduce how much it pays to borrow in its latest debt sale, Finance Minister Mohammed Al-Jadaan said.

The country, which raised $5 billion from bond investors on Tuesday, is “unlikely to go for more than the equivalent of $9 billion” in new borrowing this year, Al Jadaan said in an interview with Bloomberg TV. Speaking at the World Economic Forum in Davos, Switzerland, he said the kingdom is considering issuing euros, riyals, and Islamic bonds later this year.

“We reduced pricing significantly compared to the last issuances,” Al-Jadaan said. “Yesterday showed very clearly that demand for Saudi credit is very high and very healthy. We are very pleased not only with level of demand but also the pricing.” 


Saudi Arabia sold a three part bond, split between a $1.25 billion seven-year tranche at 85 basis points over U.S. Treasuries and a yield of 2.54%; a 12-year offering of $1 billion priced at a spread of 110 basis points and yield of 2.88%, and a $2.75 billion 35-year tranche, the kingdom’s longest yet, yielding 3.84%.