Saudi Ara­bia said to start $2bn Is­lamic bond sale

Muscat Daily - - BUSINESS -

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

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