Saudi Arabia Proposes Rates for Debut International Bond Sale
- Kingdom sets price guidance for five-, 10- and 30-year bonds
- Funds raised to help bridge budget deficit after oil’s plunge
Saudi Arabia Said to Propose Rates for Bond Debut
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Saudi Arabia told investors how much it’s willing to pay on its debut international bond to help finance a budget deficit that ballooned to the widest in more than two decades as oil prices collapsed, according to people familiar with the matter.
The government aims to sell dollar-denominated bonds due in five years for about 160 basis points over similar maturity U.S. Treasuries, 10-year notes at a spread of 185 basis points and 30-year securities at 235 basis points, the people said, asking not to be identified because the information is private. The proposed pricing is about 60 basis points higher than Qatar’s similar maturity bonds as of Tuesday.