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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)
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