Reuters: China mandates banks to issue $2 billion in bonds in Saudi Arabia

Reuters reported that China has mandated investment banks to work on issuing three- and five-year dollar bonds in Saudi Arabia.

The memo, seen by Reuters, showed that the issuance will be unsecured bonds with a fixed interest rate, subject to market conditions.

The Chinese Ministry of Finance confirmed earlier this week that it will issue bonds worth no more than $2 billion in Saudi Arabia after obtaining the approval of the State Council.

In September, China sold sovereign bonds in France worth two billion euros.

The Chinese Finance Minister announced last month that China will issue about $325 billion in bonds over the next three months, in order to revive the world’s second-largest economy.