Riyadh – Mubasher: Saudi Arabia has hired banks, comprising JP Morgan Chase & Co. and HSBC Holdings Plc to take part in arranging the issuance of dollar-denominated bonds, as the oil-rich nation seeks to narrow its budget deficit, informed sources said on Monday.
Goldman Sachs Group Inc. and Citigroup Inc. will manage the Eurobond sale that may take place this month, Bloomberg reported, citing the sources as saying.
The OPEC powerhouse seeks to borrow $31 billion in 2018 in a bid to bridge an expected budget deficit of $52 billion and fund growth plans after its economy tumbled last year.
On Friday, the kingdom said it is raising a $10 billion syndicated loan by $6 billion after existing lenders and new banks showed “an exceptional response.”
The new $16 billion loan will be priced “at a margin representing a 30 percent reduction from levels set in 2016,” Bloomberg said, citing the debt management office of the ministry of finance as saying.
