Saudi Arabia plans to hold a debt auction next week, its first bond sale of the year, as the world’s largest oil exporter seeks to plug a budget deficit, according to two people familiar with the matter. The auction, to raise as much as SAR20 billion (USD5.3 billion), is the first indication that Saudi Arabia will continue tapping the local debt market to fund a budget gap. Last year, the government planned to raise 90 billion riyals to 100 billion riyals from monthly debt sales to local institutions, people told Bloomberg in August. The Saudi Arabian Monetary Agency plans to price the auction on 24 January, with settlement of the sale two days later, the people said, asking not to be identified as the information is private. The five-year tranche may be priced from 40 basis points to 45 basis points above similar maturity U.S. Treasuries, the seven-year segment 50 basis points to 55 basis points and the 10-year securities 60 basis points to 65 basis points, the people said. (Gulf News)