26/09/2017 06:24 AST

Saudi Arabia has hired banks to arrange a global investor call ahead of a potential international bond issuance, as the Gulf’s largest economy, and the world’s top oil exporter, tries to plug a budget deficit caused by lower oil prices.

Saudi Arabia could issue up to $10 billion, banking sources said, in what would be its third international bond sale after a $17.5 billion debut international bond last year — the largest ever sold across emerging markets — and a $9 billion sukuk, or Islamic bond, issued in April.

In addition to the international debt markets, the Saudi government has recently raised debt financing from local investors through three monthly domestic sukuk sales started in July, which totalled 37 billion riyals ($9.9 billion).

The fund-raising exercises are needed to cover a large budget deficit projected at 200 billion riyals for 2017.

The new international bond, a 144A/Regulation S senior unsecured transaction, could be issued as soon as this week, sources said. It is split into three tranches: a long-five year tranche, a long-10 year one and a 30-year tranche, a document issued by one of the banks leading the deal showed on Monday.

Goldman Sachs International, GIB Capital, HSBC, J.P. Morgan and MUFG have been appointed as joint lead managers and joint bookrunners.

In the presentation documents that the government made available to fixed income investors, and reviewed by Reuters, Saudi Arabia, rated A1 by Moody’s and A+ by Fitch, said its economic fundamentals are “superior to those of its rating peers or other G20 members.” The government also boasts its “ample borrowing capacity” and “low external leverage” given that general government debt was only 13.1 per cent of GDP in 2016, while its gross sovereign external debt amounted to 4.3 per cent in 2016, the document showed.

The upcoming Saudi bond is expected to attract huge demand from global investors looking for long-term, high-yielding paper in a market still marked by low global interest rates. In its debut international issuance last year, demand for the Saudi bond was almost four times the $17.5 billion amount of the debt sale.


Ticker Price Volume
QNBK 120.95 306,407
SABIC 99.69 2,911,153
ALMARAI 54.42 257,285
STC 69.53 407,465
EXTRA 46.24 192,226
EEC 13.39 1,152,347
NGIC 28.20 210,497

TASI 6,913.46 1.11 (0.02%)

Dividend Yield (%)
  • 1-Month
  • 3-Month
  • 1-Year
Volume Change
  • 10D Avg Vs 90D Avg
Index vs...
  • 52-w high
  • 50-day moving avg.
  • 200-Day Moving Avg
Ticker Price Change
SABIC 99.69 0.19 (0.19%)
STC 69.53 0.13 (0.18%)
NCB 52.96 0.35 (0.66%)
RJHI 62.87 0.06 (0.09%)
SECO 24.00 0.06 (0.25%)
DFM achieves 100pc Q3 disclosure compliance


Dubai Financial Market (DFM) has announced that its listed companies have recorded a 100 per cent compliance regarding the disclosure of Q3-2017 results within the deadline of 45 days from the end of

Trade Arabia

United Arab Emirates stocks lower at close of trade; DFM General 0.21%


United Arab Emirates stocks were lower after the close on Thursday, as losses in the Telecoms, Real Estate & Construction and Services sectors led shares lower.

At the close in Dubai, the DF


Apparent state support aids Saudi, Qatar blue chips rebound


Saudi Arabia's stock market closed flat on Thursday, apparently in response to buying by state-linked funds, while Qatar rebounded from a six-year low as blue chips regained strength.



Muscat bourse reacts on profit-booking


Shares on the Muscat bourse reacted on profit booking. MSM30 Index ended on a flat note to close at 5,111.41 points, marginally down by 0.06 per cent. The MSM Sharia Index ended at 731.49 points, up

Times of Oman

Consolidation in UAE markets as earnings season ends


The UAE’s main equity indices fell less than 1 per cent on Wednesday as earnings season for the third quarter of 2017 wrapped up, with the last of listed companies releasing their financial results.<