Saudi Arabia raises $12.5 bln from dollar bond sale

Saudi Arabia has raised SAR 46.9 billion ($12.5 billion) from its second dollar bond sale this year as the Kingdom seeks to plug up its budget deficit, the finance ministry said in a statement Thursday.

“The issuance received significant interest from international and local investors, with the order book peaking at $40 billion (equivalent to SAR 150 billion),” the ministry added.

The issue was divided into three tranches: the first tranche of SAR 11.3 billion matures in 2023, the second tranche worth SAR 18.8 billion matures in 2028, while the third one’s size is set at SAR 16.9 billion and matures in 2047.

The ministry statement, which didn’t reveal the pricing, added that it expects settlement by October 4. The

According to Reuters, the initial price guidance for the three tranches was in the area of 130 basis points over U.S. Treasuries for the long five-year tranche, 165 bps over for the long 10-year and 200 bps over for the 30-year.

Guidance was tightened by 15 bps, with the bond expected to price within a range of plus or minus 5 bps across the three tranches.