Saudis raise US$17.5 bil­lion

The Sun (Malaysia) - - SUNBIZ -

PARIS: Saudi Ara­bia raised US$17.5 bil­lion (RM73 bil­lion) in its first in­ter­na­tional bond is­sue, HSBC an­nounced yes­ter­day, after the bank took part in the trans­ac­tion. Saudi Ara­bia di­vided the is­sue into three tranches with ma­tu­ri­ties of five, 10 and 30 years re­spec­tively, HSBC said.

The US$5.5 bil­lion in five-year bonds car­ries a coupon that pays an­nual in­ter­est of 2.375%.

A fur­ther US$5.5 bil­lion of 10-year bonds car­ries a coupon of 3.25% in­ter­est and the $6.5 bil­lion in 30year bonds has a coupon with 4.5% in­ter­est.

The ef­fec­tive an­nual in­ter­est rate, in­clud­ing the coupon and amount of the dis­count be­tween the face value of the bond and its sale price, is 2.588% on the five-year bonds, 3.407% on the 10-year bonds, and 4.623% on the 30-year bonds. The bond is­sue is larger than many an­a­lysts ex­pected, Bloomberg News said. – AFP

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