Saudi Arabia releases price guidance for first international debt sale
Saudi Arabia has released price guidance for its debut international bond.
The kingdom’s first sale of international debt – one of the most keenly awaited issues this year – is being split into three maturities, writes Elaine Moore.
A five year bond is being offered with a yield 160 basis points above US government bonds, while a benchmark 10-year bond comes with a 185 basis point premium. The longer-dated 30 year bond is being offered with a yield 235 basis points above US Treasuries.
Prices may tighten in the course of the sale but the early indication puts Saudi Arabia’s 10 year borrowing rate around 3.6 per cent – in line with the expectations of investors who attended the bond roadshow.
Riyadh is thought to be targeting a sale between $10bn and $15bn, making it the largest issue of international debt in the Middle East and a potential rival to Argentina’s record-breaking $16.5bn emerging market bond sale earlier this year.
Books will close at 5pm New York time, with the sale finalised on October 19.