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Saudi Arabia this week sold $7.5bn in international bonds, the kingdom’s first foray in the international debt market since October’s murder of Jamal Khashoggi.
The brutal murder, and subsequent investor boycott of Saudi Arabia’s Future Investment Initiative conference ( MEES, 19 October 2018 ), raised fears that some international investors would shy away from doing business in the kingdom.
Nevertheless the latest two-tranche bond issue was more than three times oversubscribed.
The first tranche of $4bn 10-year bond was priced at 175 basis points over US Treasuries, while the second tranche of $3.5bn 31-year bond was sold at 230 basis points above US Treasuries. Pricing of these bonds represents a small premium on existing benchmark of the same maturities, but is broadly in line with the market. (CONTINUED - 313 WORDS)
DATA INSIDE THIS ARTICLE
|chart||Saudi Arabia International Fundraising ($Bn): 2019 Could See Record $31.5bn Raised After Initial $7.5bn Issue|