Riyadh-Mubasher: Saudi Arabia is in negotiations for issuing its first international bond sale, seeking to address damage caused to its public finances by lower oil prices, according to the Financial Times.
“A number of international banks have been asked to indicate their terms to arrange a sovereign debt issue, according to people familiar with the situation,” it added.
This loan is seen as a first step towards sovereign bond issuance, the Financial Times said, noting that Saudi officials said the country could raise debt levels to 50% of gross domestic product (GDP) by 2020, from less than 7% of GDP in 2015.
“The size and maturity of Saudi Arabia’s first international bond has not been made public, but credit analysts at two European banks suggested that the country might expect to borrow at rates about 200 basis points above equivalent US Treasury bonds,” it noted.
