Saudi Bonds Hit $25Bn

The Saudi government is in talks with local banks with a view of marketing a new batch of local currency bonds worth SR20bn ($5.3bn), to be allocated imminently, according to local financial website Maaal.

This will bring to SR95bn ($25bn) the total amount of bonds issued by Riyadh this year. Issues resumed in July for the first time since 2007 with the sale of SR15bn ($4bn) in bonds to the local market to cover a budget deficit created by low oil prices.

Fahd al-Mubarak, governor of the Saudi Arabian Monetary Agency (SAMA), the kingdom’s de facto sovereign wealth fund, previously said that he expects to borrow up to SR100bn ($27bn) from the local market by the end of 2015 to sustain the government’s elevated level of public spending (MEES, 17 July). (CONTINUED - 384 WORDS)