Saudi Arabia to start 3-part dollar bond offering

Saudi Arabia has given on Tuesday initial price guidance for a planned three-part dollar bond, according to a document from one of the banks leading the potential deal, Reuters reported.

The Kingdom has set initial price guidance for the 2025 notes at 170 basis points area over Treasuries, 2030 securities in the 200 basis points area and 2049 bonds in the 235 basis points area.

Citigroup, GIB Capital, Goldman Sachs Group and HSBC Holdings, and Morgan Stanley have been appointed as global coordinators for the issue.

Bank of China, Industrial & Commercial Bank of China, JPMorgan Chase & Co., and Mitsubishi UFJ Financial Group and GIB Capital are joint lead managers for the sale.

The size of the deal is expected to be $4 billion, Mohieddine Kronfol, chief investment officer of Global Sukuk and MENA fixed income at Franklin Templeton Investments was quoted as saying.

The bonds are expected to price later on Tuesday.

According to earlier reports, Saudi Arabia plans to borrow approximately $31 billion this year to bridge an expected budget deficit of $52 billion and fund growth plans.

Last month, the country increased a $10 billion syndicated loan by $6 billion on higher demand.