UPDATE 3- #SaudiArabia raises $5 bln as bond investors brush off Gulf jitters - Reuters

UPDATE 3-Saudi Arabia raises $5 bln as bond investors brush off Gulf jitters - Reuters:

Saudi Arabia has raised $5 billion in bonds after receiving around $20 billion in orders, a sign that an escalation in geopolitical tensions in the Gulf has not deterred investors looking for high returns amid low global rates.

The kingdom has issued bonds with maturities of seven, 12 and 35 years, a document by one of the banks leading the deal showed, as part of plans to raise $32 billion worth of debt this year as it seeks new financing channels in an era of lower oil prices.

The bond sale is the first by a Gulf government this year and follows a rise in geopolitical tensions in the region after Iran and the United States, Saudi Arabia’s ally, traded military strikes earlier this month.

Riyadh raised $1.25 billion in seven-year bonds offering 85 basis points over U.S. Treasuries, $1 billion in 12-year notes with a spread of 110 basis points over the benchmark, and $2.75 billion in 35-year bonds, the kingdom’s longest international bonds ever, with a 3.84% yield.