Saudi Arabia Taps Bond Market With $5 Billion Sukuk Deal
- Offering follows $12 billion deal in January, biggest in years
- Saudi Arabia sold bonds due in three, six and 10 years
Saudi Crown Prince Mohammed bin Salman
Photographer: Sergei Savostyanov/AFP/Getty ImagesThis article is for subscribers only.
Saudi Arabia raised $5 billion through the sale of dollar-denominated sukuk as it seeks to plug a hole in its finances and fund spending on Crown Prince Mohammed bin Salman’s economic diversification drive.
The kingdom sold the bonds through notes maturing in three, six and 10 years, according to a person familiar with the matter, who asked not to be identified. The deal was priced at yields of 60 basis points more than comparable US Treasuries for the shortest tranche and at 85 basis points for the longest tranche, the person said. That’s down from initial discussions for around 85 to 110 basis points.