Saudi Arabia plans biggest-ever bond sale by emerging-market nation
Riyadh — Saudi Arabia is planning to raise as much as $17.5bn in the biggest bond sale ever from an emerging-market nation, according to two people with knowledge of the offering, as it seeks to shore up finances battered by the slide in oil. The government aims to sell dollar-denominated bonds due in five years yielding about 140 basis points more than similar-maturity US Treasuries, 10-year notes at a spread of about 170 basis points and 30-year securities at 215 basis points, the people said, asking not to be identified because the information is private. The sale would eclipse Argentina’s $16.5bn offering in April as the largest from a developing nation, underlining the deepening strain on an oil-dependent country that has eschewed international debt markets until now. The nation clocked up a budget shortfall of $97bn last year, equal to 15% of its gross domestic product, prompting the government this year to cut subsidies, wages and spending. "Boom, they went full scale," said ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.