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Saudi Arabia raised $11.5 billion from its first bond offering of the year, with an orderbook in excess of $28 billion.
The kingdom, which became the first GCC sovereign to tap international debt markets in 2026, saw high demand for its multi-tranche offering across three-, five-, 10- and 30-year tenors.
The three-year bond raised $2.5 billion, with a spread set at +65 basis points over US Treasuries, tightened from IPTs in the T+95 bps area. The shortest tenor had a 4.125% coupon, with a yield of 4.171%, and a reoffer price of 99.872.
The five- and 10-year tranches saw a $2.75 billion raise each, with the shorter tenor priced at T+75 bps from IPTs of T+100bps, with a 4.375% coupon, a 4.455% yield and a re-offer price of 99.645.
The 10-year tranche came in at T+85bps from IPTs in the +110bps area, with a 4.875% coupon, a 5.009% yield and a re-offer price of 98.956.
The 30-year tranche witnessed the highest raise at $3.5 billion, priced at T+110bps from IPTs in the T+140bps area, with a coupon of 5.875%, with a 5.948% yield and a re-offer price of 98.984.
The combined order book stood in excess of $27.7 billion at launch, which later peaked to $28.3 billion at pricing, split between $5.2 billion for the three-year tranche, $6.5 billion for the five-year, $8.2 billion for the 10-year, and $8.4 billion for the 30-year, excluding JLM interest.
Saudi’s National Debt Management Center (NDMC) said the orderbook saw an oversubscription rate of 2.7x.
HSBC was the bookrunner and dealer for the three-year tranche, with Citi handling the five-year, Goldman Sachs International the 10-year, and JP Morgan the 30-year.
The banks acted as joint global coordinators and joint bookrunners on the benchmark issuance, along with Bank of China, BNP PARIBAS, Credit Agricole CIB and Standard Chartered as joint bookrunners and active lead managers.
Saudi Arabia, rated Aa3 (Stable) / A+ (Stable) (Moody’s/Fitch), actid through the Ministry of Finance, for the senior unsecured Reg S issuance.
The expected rating for the bonds is in line with the issuer and will be listed on the London Stock Exchange’s Main Market.
The funds will be deployed for domestic budgetary purposes, as Saudi Arabia races towards completing various giga-projects in the lead up to its Vision 2030 plan.
(Writing by Bindu Rai, editing by Seban Scaria)
