Saudi bond issue may be delayed by 9/11 legislation: report

Saudi Arabia first international bond issuance might be delayed due to the upcoming US vote on legislation that would allow the families of 9/11 victims to sue the kingdom, Bloomberg report, citing unnamed people with knowledge of the matter.

US president Barack Obama has vetoed the legislation, but a senate vote against the veto on Wednesday could make investors wary of the issue, two of the sources said.

Finance minister Ibrahim Al-Assaf said in a statement to Bloomberg that Saudi Arabian officials have not made a decision yet on the timing of the bond and amount they plan to raise.

However, media reports said the sale is likely to happen next month.

Banks managing the sale will be tracking market reaction before making a decision, and no contingency plans are in place in case of an override vote, Bloomberg said citing another source.

The kingdom is planning to sell at least $10 billion of bonds. The funds raised are said to be earmarked for the economic transformation plan and to help narrow a budget shortfall caused by weak oil prices.