Wednesday 12, September 2018 by Bloomberg

Saudi Arabia is said to start $2 billion Islamic bond sale

 

The kingdom set initial price guidance for the January 2029 notes in the area of 145 basis points over midswaps. 

Saudi Arabia started the sale of dollar-denominated Islamic bonds and is seeking to raise about $2 billion to complete the kingdom’s external funding requirements for the year.

The world’s biggest oil exporter mandated BNP Paribas SA, HSBC Holdings, JPMorgan Chase, Citigroup and Mizuho Bank as well as Samba Capital for the deal, according to a term sheet seen by Bloomberg. Global books are open and the deal is today’s business.

Saudi Arabia plans to borrow about $31 billion this year to bridge a budget deficit brought on by lower oil prices. In April, it raised $11 billion in a dollar bond sale and has raised a total of $50 billion since the end of 2016, according to data compiled by Bloomberg. In March, it increased a $10 billion syndicated loan by $6 billion.

The kingdom’s sovereign wealth fund will sign an $11 billion loan this week, marking its first-ever borrowing.

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