Saudi banks get small part of $7 bln bond sale amid liquidity concerns -sources - Reuters:
The Saudi government sold to local banks only a small part of $7 billion bonds issued last week, three sources told Reuters, amid fears of a liquidity squeeze caused by lower oil prices.
The three-part bond issuance came after Riyadh last month raised its debt ceiling to 50% of GDP from a previous 30% to finance a widening deficit caused by lower oil prices and the economic downturn caused by the coronavirus outbreak.
A Saudi banker said his and at least two other local banks were not allocated any paper despite placing sizeable orders, adding it was probably due to government’s plans to maintain ample liquidity among banks which, he said, “are overextended”.
He said that could also suggest the government plans to issue local currency denominated bonds soon.
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