Saudi Arabia may tap debt market as oil output cuts hit revenues: sources - Reuters:
Saudi Arabia is likely to sell new international bonds soon as Sunday’s historic deal to cut oil output among major producers puts further pressure on revenues already hurt by the collapse in crude prices, four banking sources said.
Riyadh increased its debt ceiling to 50% of GDP from a previous 30% in March. Neighbours Qatar and Abu Dhabi emirate successfully sold a combined $17 billion of bonds last week.
“It’s the logical next step (for Saudi to issue after Qatar and Abu Dhabi) ... they may wait a bit for the oil market to react to the cuts as their name is more closely associated with oil,” said a debt banker.
A spokesman for the Saudi finance ministry did not immediately respond to a Reuters query on debt issuance plans.
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