Saudis raise $4.53bn in oversubscribed sukuk

RIYADH: Saudi Arabia has raised $4.53 billion from a local Islamic bond issue that was three times oversubscribed, it said yesterday as it battles a budget deficit caused by low oil revenues. The finance ministry said orders exceeded 52 billion riyals ($13.6 billion) for its first issue of domestic sukuk bonds worth 17 billion riyals. It said the new bonds would be divided into three tranches, with maturities ranging from five to ten years. “The strong demand for local bonds reflects the confidence of investors in the kingdom’s issuings and confirms the strength of the Saudi economy’s foundations,” the ministry said in a statement.