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DUBAI - Saudi Arabia plans to tap global debt markets on Monday with the sale of a triple-tranche bond with tenors of six, 10 and 30 years, IFR, a capital markets publication, reported.
Initial guidance for the benchmark-sized six-year bond was around 115 basis points (bps) over U.S. Treasuries (UST), 135 bps over UST for the 10-year, and 195 bps for the 30-year portion.
Saudi Arabia, the world's top oil exporter, last week approved an annual borrowing plan that estimates financing needs for 2024 at $23 billion to help plug a fiscal deficit and repay upcoming maturities.
The kingdom, midway through an economic transformation plan known as Vision 2030 to diversify away from hydrocarbons, has budgeted for increased spending to drive domestic growth and support non-oil GDP.
The government has mandated Citi, HSBC, J.P. Morgan Securities, and Standard Chartered Bank as global coordinators & joint bookrunners for Monday's expected issue, which is for domestic budgetary purposes.
Bank of China, Mizuho International, SMBC Nikko, and SNB Capital are acting as passive bookrunners.
Benchmark-sized is generally understood to mean at least $500 million.
Last year, Saudi Arabia tapped debt markets for a $10 billion three-part bond in January 2023, followed by a $6 billion Islamic bond in May.
(Reporting by Hadeel Al Sayegh and Rachna Uppal; Editing by Alex Richardson and Ed Osmond)