Orders are 7 times the size of the bond issue
Source: Dubai – Arabic.net
The Saudi Ministry of Finance, through the National Center for Debt Management, has announced the completion of receiving investor requests for its seventh international bond issuance within the program of the Kingdom of Saudi Arabia’s international program for issuance of debt instruments.
The total number of IPO applications reached more than $ 54 billion, and the coverage ratio exceeded more than seven times the total issue.
The total offering amounted to 7 billion dollars (equivalent to 26.25 billion riyals) divided into three segments as follows:
First: $ 2.5 billion (equivalent to 9.37 billion riyals) for 5-year bonds maturing in 2025 AD.
Second: $ 1.5 billion (the equivalent of 5.62 billion riyals) for the 10-year maturities of the year 2030.
Third: $ 3 billion (equivalent to 11.25 billion Saudi riyals) for 40 years maturity of 2060 AD.
Saudi Arabia has appointed City, Goldman Sachs, HSBC, Bank of China, Meizuho, MUFJ, SMBC and Samba Capital to process the bonds and to arrange the sale of debt securities.
Meanwhile, Mazen Al-Sudairy, head of Al-Rajhi Capital, said in a statement to Al-Arabiya yesterday, Wednesday, that the Saudi Ministry of Finance is quick to make effective and accurate decisions and is able to maintain the size of the 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 market uncertainty, especially between the size of the assets. The size of investment bonds is huge and the demand for them is high in the current circumstance.
Al-Sudairy stressed that the Kingdom’s economic dimensions are healthy and coherent. “We do not expect an increase in the size of the unemployed due to the state’s assistance to the private sector and 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. The base of distributions and profits in the market will be affected relatively. It is expected that the impact on the first quarter is not Clearly, the effect will begin to appear in the second quarter. ”