Goldman, JPMorgan Among China’s Picks for Saudi Dollar Bond Sale

China has picked banks including Goldman Sachs Group Inc. and JPMorgan Chase & Co. to help sell its first dollar bonds since 2021, people familiar with the matter told Bloomberg.

The sale of up to $2 billion will take place in Saudi Arabia’s capital, Riyadh, and likely happen next week, Bloomberg reported on Tuesday.

The move is emblematic of China’s deepening financial ties with Saudi Arabia, the biggest economy in the Middle East, and signals Beijing’s backing for the kingdom’s ambitions to become a magnet for investment.

The Chinese Ministry of Finance has hired several banks to manage the issuance of three- and five-year debt, said the people. The group also includes Bank of America, Bank of China, Deutsche Bank AG, HSBC Holdings Plc, Industrial and Commercial Bank of China, Standard Chartered Plc and First Abu Dhabi Bank PJSC.

Saudi Arabia is an unusual venue for selling dollar notes, with London, New York and Hong Kong normally being picked for such transactions.

Over the last two decades, China’s dollar-denominated sovereign bonds were issued in Hong Kong, according to data compiled by Bloomberg.

According to a bond-offering document seen by Bloomberg, the debt will trade on Nasdaq Dubai and be listed on the Hong Kong exchange.