Riyadh – Mubasher: The Saudi Ministry of Finance (MoF) on Thursday said it completed the pricing of the second issue of international bonds with a value of order books at SAR 150 billion ($40 billion) from the domestic and international investors.
The value of second issue is SAR 46.9 billion ($12.5 billion).
The issue was distributed into three tranches, at SAR 11.3 billion ($3 billion) maturing in March 2023, SAR 18.8 billion ($5 billion) maturing in March 2028, and SAR 16.9 billion (4.5 billion) maturing in October 2047, respectively, the MoF’s statement added.
The MoF forecasted that the issue will be settled on 4 October or in any date near that.
“The securities referred to herein may not be sold in the United States absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”),” the ministry’s statement noted.
Saudi Arabia does not plan to register any of the securities in the US or to implement a public offering.
The securities will be offered in the US to the qualified institutional purchasers subject to rule 144A under the Securities Act, and abroad the US subject to regulation $ under the Securities Act.
In October 2016, Saudi Arabia raised $17.5 billion (SAR 65.6 billion) from its first international offering of bonds.
The first issue of Saudi Arabia was launched in April, with the Kingdom successfully raising $9 billion from five- and 10-year Islamic bonds.
The Kingdom has turned to global bond issues following the sharp decline in oil prices and its increasing budget deficit, which is projected to reach SAR 198 billion ($53 billion) in 2017.
Locally Saudi Arabia launched SAR-denominated bonds worth SAR 37 billion over the past three months.
