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10-Jan-2019

Saudi Arabia issues duel tranche USD-denominated bonds

The Kingdom has started marketing bonds due in January 2029 and 2050, a document issued by one of the banks leading the deal showed on Wednesday. Seeking to raise USD7.5bn, the Kingdom attracted demand of USD27bn for the dual-tranche paper maturing in 2029 and 2050, according to a document issued by one of the banks leading the deal. Saudi Arabia started marketing Wednesday’s bonds at around 40 basis points (bps) above its existing curve, according to another document. Spreads were later tightened by 25bps on the 2029 tranche, the size of which has been set at USD4bn, and by 20bps on the 2050 tranche, set at USD3.5bn. BNP Paribas, Citi, HSBC, JPMorgan and NCB Capital have been hired to arrange the debt sale. 

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