Saudi Arabia’s $5.5 Billion Bond Sets Course for Record Issuance

Saudi Arabia sold $5.5 billion of international bonds on Tuesday to help plug its budget deficit, putting it on course for a record year of issuance as it continues to spend heavily on Crown Prince Mohammed bin Salman’s economic-diversification projects.

The two-part Sukuk, or Islamic debt, sale was made up of a $2.25 billion five-year note and a $3.25 billion 10-year bond. The shorter tranche priced with a spread of 65 basis points over US Treasuries, while the longer one was sold at 75 basis points.