According to ArabiaNet, a document from one of the banks that lead the Saudi bond issuance process showed that the Kingdom appointed banks to issue bonds denominated in dollars in three tranches and started marketing them with maturities of 5.5 years, 10.5 years, and 40 years.
The document, which was revealed by Reuters, showed that Saudi Arabia marketed through the Ministry of Finance a five-and-a-half-year bond slice at about 315 basis points over American treasury bills and a ten-and-a-half-year segment at about 325 basis points over US bonds and a forty-year segment at around 5.15 %.
The agency reported that the Kingdom appointed City, Goldman Sachs, HSBC, Bank of China, Mizuho, MFF and SSMBC and Samba Capital to process the bonds and to arrange the sale of debt securities.
Moreover, Mazen Al-Sudairy, head of research, Al-Rajhi Capital, said that the Saudi Ministry of Finance is quick to take effective and accurate decisions and is able to maintain the size of debt and a healthy reserve for the Saudi economy as necessary.
He added in an interview with Al-Arabiya that the size of the issue depends on the demand from the market and that the demand for bonds is now high in light of the uncertainty in the markets, especially between the size of the assets. The size of the investment bonds is huge and the demand for them is high at the present time.
Al-Sudairy stressed that the Kingdom's economic dimensions are healthy and coherent. He added, "We do not expect an increase in the size of the unemployed due to the state's assistance to the private sector, the Kingdom's ability to maintain a good exchange rate, and the volume of debt is reassuring, which are the main dimensions we should look at.
Distributions and profits on the market will be affected relatively. It is expected that the impact on the first quarter will be unclear and the effect will begin to appear in the second quarter.
