Saudi bond leads the way for sovereigns

Author: Lizzie Meager | Published: 27 Oct 2016

Saudi Arabia’s record $17.5 billion bond has been deemed agreat success for the kingdom, paving the way for future offerings.

The deal, which is the largest ever bond offering by an emerging or developing market, is now listed on the Irish Stock Exchange. Originally planned at $10 billion, the government opted to increase the sum after the notes were four times oversubscribed.

Saudi has been selling domestic bonds over the past year to fund its budget shortfall, but this is the first time it’s ever sold dollar-denominated debt on the international markets.

Times are changing in Riyadh

It plans to become a regular issuer in this area, issuing up to $100 billion in sovereign debt by 2020.

The benchmark has now been set for other entities to raise their own debt too. Many entities are said to be waiting for this to close before issuing their own...