$7bln Saudi bond sale oversubscribed - MoF

Issuance was more than 7 times oversubscribed with total orders amounting to more than $54bln

  
An employee counts Saudi Riyals bills at a money exchange office in central Cairo, Egypt, March 20, 2019. Image for illustrative purposes.

An employee counts Saudi Riyals bills at a money exchange office in central Cairo, Egypt, March 20, 2019. Image for illustrative purposes.

REUTERS/Mohamed Abd El Ghany

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)

(gerard.aoun@refinitiv.com)

#SAUDI #BOND #FINANCE

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