Saudi Arabia said to start $2bn Islamic bond sale
Dubai, UAE - Saudi Arabia started the sale of dollar-denominated Islamic bonds and is seeking to raise about US$2bn to complete the kingdom’s external funding requirements for the year.
The world’s biggest oil exporter mandated BNP Paribas SA, HSBC Holdings Plc, JPMorgan Chase & Co, Citigroup Inc, Mizuho Bank and Samba Capital for the deal, according to a term sheet seen by Bloomberg. The kingdom set initial price guidance for the January 2029 notes in the area of 145 basis points over midswaps. Global books are open and the deal is today’s business.
Saudi Arabia plans to borrow about US$31bn this year to bridge a budget deficit brought on by lower oil prices. In April, it raised US$11bn in a dollar bond sale and has raised a total of US$50bn since the end of 2016, according to data compiled by Bloomberg. In March, it increased a US$10bn syndicated loan by US$6bn.
The kingdom’s sovereign wealth fund will sign an US$11bn loan this week, marking its first-ever borrowing, people familiar with the matter said on Tuesday.
In April, Saudi Arabia raised US$11bn in a dollar bond sale and has raised a total of US$50bn since the end of 2016, according to data compiled by Bloomberg