#SaudiArabia gets $3.25 billion with year's third international bond sale | Reuters

Saudi Arabia gets $3.25 billion with year's third international bond sale | Reuters

Saudi Arabia sold $3.25 billion in dual-tranche bonds on Tuesday comprising a sukuk tranche and a conventional portion in its third international bond sale of the year, a term sheet viewed by Reuters showed.

The world's top oil exporter sold $1.25 billion in 30-year bonds at 3.36% and $2 billion in sukuk due in May 2031 at 90 basis points over U.S. Treasuries (UST), the term sheet showed.

Guidance was tightened after orders peaked over $11.5 billion earlier on Tuesday. Initial guidance was around 3.6% for the conventional and around 110 bps over UST for the sukuk.

Orders at final guidance were over $4.1 billion for the conventional tranche and $6.9 billion for the sukuk.

The deal was expected between $2.5 billion and $3 billion but strong demand allowed it to launch on the low end of final guidance while still increasing the size.