The Kingdom of Saudi Arabia intends to issue dollar bonds in two tranches, with maturities of 12 and 40 years.
According to Arabianet, the kingdom has appointed Goldman Sachs, HSBC and JP Morgan to arrange the planned bond sale.
Sources have indicated to Bloomberg Agency on January 12 that Saudi Arabia is preparing to return to the global capital markets by selling bonds to raise about $ 5 billion in aid. In covering the financing needs that increased with the drop in oil prices last year.
Saudi Arabia expects to decline its fiscal deficit this year after spending cuts reduced its financing needs.
Saudi Arabia surprised investors by moving away from foreign capital markets in the second half of last year, and chose to cover almost all of its budget deficit through domestic borrowing. The total debt owed by the Kingdom is approximately $ 228 billion.
Bond sales in emerging markets began quickly this year, as borrowing costs fell following unprecedented stimulus by central banks to support economies during the pandemic.
governments and companies in the Gulf will issue nearly $ 120 billion in sukuk this year, according to Franklin Templeton. That compares with a record $ 126 billion last year.
In addition, oil prices fell today, Tuesday, as the chances for the rapid approval of a new economic stimulus in the United States receded, while the high number of coronavirus infections raised doubts about the pace of any recovery in demand.
and Brent crude fell 28 cents, equivalent to 0.5% to $ 55.60 a barrel by 07:47 GMT, while US crude fell 26 cents, or 0.5%, to 52.51 Dollar.
The two benchmarks rose about 1% on Monday.
