The bond sale surpasses the record set by Argentina in April by 10 billion dollars.
The kingdom has sold billions worth of sovereign debt in its first global bond sale – the largest ever conducted by an emerging economy. The sale comes as Saudi Arabia’s budget is squeezed by low oil prices.
The oil-rich country earned $17.5 billion (15.9 billion euros) from the sale of government bonds, with maturities of five, ten, and 30 years, British bank HSBC said Thursday.
HSBC was one of the banks underwriting the sale, which was Saudi Arabia’s first in international finance markets. The sale was hailed as “historic” because it was nearly four times oversubscribed.
“It was the biggest syndicated issue ever by any country,” said Jean-Marc Mercier, co-director of the debt capital markets division at HSBC.
The bond issue eclipsed the previous record for an emerging market – a $16.5 billion issue by Argentina in April. A source familiar with the Saudi offer said order books totaled $67 billion, coming close to the $69 billion record set by Argentina.
In the days running up to the sale, senior Saudi officials held a series of meetings with top investors in London and the United States to describe the kingdom’s ambitious economic reform plans that include sharp cuts in state spending and a drive to develop non-oil businesses.
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