Saudis raise US$17.5 billion
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