Saudi Press

Saudi Arabia and the world
Saturday, Jul 05, 2025

Saudi Arabia sells $5 bln in first bond deal in almost a year

Saudi Arabia sells $5 bln in first bond deal in almost a year

Saudi Arabia sold on Tuesday $5 billion in Islamic and conventional bonds for which demand topped $26.5 billion as it held its first international bond sale in almost a year.
The top oil exporter's first bond sale since November came amid turbulent markets and heightened tensions with Washington over an OPEC+ oil production cut, as Riyadh gears up to host its annual investment conference next week.

The kingdom sold $2.5 billion in six-year sukuk at 105 basis points (bps) over U.S. Treasuries (UST) and $2.5 billion in 10-year bonds at 150 bps over UST, a bank document showed.

That was tightened from initial guidance of around 135 basis points (bps) over U.S. Treasuries (UST) for the sukuk and around 180 bps over UST for the 10-year tranche.

"There has been very little Gulf sovereign issuance this year and the market sees it as a pretty safe bet when there is a lot of uncertainty elsewhere in the EM space," said Justin Alexander, director of Khalij Economics and Gulf analyst for GlobalSource Partners.

"Saudi is a fairly logical substitute for Russia and its weight in indices such as the JPMGBI (JPMorgan Government Bond Index) has been growing."

Dino Kronfol, Franklin Templeton's chief investment officer for global sukuk and MENA fixed income, said after initial guidance that demand should be strong with issuance in the Gulf down some 60% so far this year and concessions visible in initial price targets.

"This should be enough to overcome fragile sentiment in global markets," Kronfol had said.

Bond issuances in the Gulf have plummeted this year as the region reaps the rewards of high oil prices, with all six Gulf Cooperation Council countries expected to post surpluses, for some for the first time in years.

Issuers have also been wary of tapping the markets in a year that has been marked by volatility and as interest rates continue to rise amid an aggressive tightening cycle by the U.S. Federal Reserve to tame decades-high inflation.

BNP Paribas, Goldman Sachs and HSBC are global coordinators and joint bookrunners on the debt sale, while Aljazira Capital, Citi, JPMorgan and Standard Chartered are passive joint lead managers and bookrunners.

Saudi Arabia's finance ministry on Tuesday also invited holders of its $3 billion bonds due in 2023, $4.5 billion notes due in April 2025, $2.5 billion bonds due in October 2025 and $5.5 billion notes maturing in 2026 to tender them for cash.

The amount accepted in the tender offer will be announced following the pricing of the new bonds and sukuk, expected later on Tuesday.

Monday is the deadline for bondholders to participate in the tender offer and indicative results are expected next Tuesday.

Demand for the news bonds was likely supported by investors tendering their existing notes for cash buying into the new ones, market sources said.

Also raising bonds from the region today were Abu Dhabi sovereign wealth fund Mubadala and Dubai's biggest bank Emirates NBD.

Saudi Arabia's sovereign wealth fund, the Public Investment Fund, raised $3 billion with green bonds in its debt markets debut earlier this month.

Saudi Arabia raised $3.25 billion in bonds in November via sukuk and bonds, after issuing bonds worth 1.5 billion euros in February and $5 billion in January last year.
Newsletter

Related Articles

Saudi Press
0:00
0:00
Close
AI Raises Alarms Over Long-Term Job Security
Saudi Arabia Maintains Ties with Iran Despite Israel Conflict
Russia Formally Recognizes Taliban Government in Afghanistan
Mediators Edge Closer to Israel-Hamas Ceasefire Agreement
Emirates Airline Expands Market Share with New $20 Million Campaign
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
Iran's Parliament Votes to Suspend Cooperation with Nuclear Watchdog
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
Explosions Rock Doha as Iranian Missiles Target Qatar
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Oman Set to Introduce Personal Income Tax, First in Gulf
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Netanyahu Signals Potential Regime Change in Iran
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
Iran Conducts Ballistic Missile Launches Amid Heightened Tensions with Israel
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
Trump's Anti-War Stance Tested Amid Israel-Iran Conflict
UK Deploys Jets to Middle East Amid Rising Tensions
×