Saudi Arabia’s Ministry of Finance (MoF) announced that the kingdom’s bond sale to raise $7 billion has been heavily oversubscribed.

The dollar-denominated bond was more than 7 times oversubscribed with total orders amounting to more than $54 billion, MoF said in a statement.

The kingdom has issued a total of $7 billion, consisting of three tranches as follows:

  • $2.5 billion for 5-year notes maturing in 2025
  • $1.5 billion for 10-year notes maturing in 2030
  • $3 billion for 40-year notes maturing in 2060

Saudi Arabia’s economy is coming under a huge strain after the oil prices plunged about 50 percent this year to under $30 a barrel.

The kingdom, the world’s biggest oil exporter, is tapping the debt market after it recently agreed an output cut with other top oil producing nations.

(Writing by Gerard Aoun; editing by Seban Scaria)



Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2020