April 15, 2020
The Saudi Investment Bank
The Kingdom, through the Ministry of Finance, markets five and a half years of papers at about 315 basis points over US Treasury bonds, ten and a half years bonds at about 325 basis points and forty-year bonds at about 5.15 percent.
The size of the deal will depend on the market's turnout, but bankers and fund managers say they expect a multi-billion dollar process.
City, Goldman Sachs and H were appointed. Ace. In me. CNN, Bank of China, Meizuho, and mother. Yo. F. Gee, AC. Mother. In me. CNN, and Samba Capital to arrange the debt sale, which is scheduled to close later on Wednesday.
Reuters news agency, which published the news, said that a spokesman for the Saudi Ministry of Finance had not yet responded to a request for comment.
Riyadh raised the debt ceiling to 50 percent of GDP from a previous level of 30 percent in March, as it plans to increase borrowing to offset the decline in oil revenues in light of an economic slowdown caused by the spread of the Corona crisis.
The planned bond issue comes after Qatar and Abu Dhabi successfully sold a combined value of $ 17 billion in bonds last week.
It also follows a historic agreement signed on Sunday to cut oil production between two major producers, which while it may contribute to stabilizing the oil market, is expected to place additional pressure on Riyadh's revenues this year.