Banks to vie for Saudi international bond mandate

Several international banks are holding meetings with Saudi Arabian officials as they compete to mandate the kingdom’s debut international bond, Reuters reported on Monday, citing unnamed industry sources.

The meetings are the latest step in the hiring process.

Market commentators expect the issue size to range between $15 billion and $20 billion through the fundraising exercise.

In May, Saudi Arabia was said to have invited banks to submit proposals for a potential US dollar bond.

The kingdom is projected to issue the bond in global capital markets later this year to fund its fiscal deficit.

Moody's, Standard & Poor's (S&P) and Fitch have all cut Saudi Arabia’s sovereign ratings in recent months, with S&P downgrading it by three notches since October.