Saudi Arabia to offer bonds of a record size in 3 ‎tranches

The IRF Bulletin stated: Concerned with covering the capital markets, Saudi Arabia intends to knock on the doors of the debt markets today, Monday, by selling bonds of standard size in three tranches for terms of 6 – 10 to 30 years.

According to Reuters, it added that initial indicative prices for the three tranches were set at approximately 115, 135 and 195 basis points, respectively, above US Treasury bonds.

Saudi Arabia is set to issue three-part dollar bonds as emerging market governments rush to secure lower costs after US bond yields fell since October.

The Kingdom follows the example of countries such as Mexico, Indonesia and Poland, which have issued about $25 billion in bonds between them in 2024. This makes it the busiest start to a year on record for dollar and euro-denominated debt issuances from developing countries, according to data compiled by Bloomberg.