Saudi Arabia raises USD3.4B in debut eurobond issue

RIYADH (AFP) – Saudi Arabia has raised USD3.4 billion in its first euro-denominated bond sale, the government said on Wednesday, as the petro-state taps new funds to plug a budget deficit.

The Finance Ministry announced the “successful completion of the first offering of an international bond denominated in the euro currency… with a total issue of three billion euros”.

The world’s top crude exporter, which had previously only issued bonds denominated in dollars, has posted budget deficits since oil prices crashed in 2014.

The order book for the bond sale “peaked at 13.5 billion euros, which was 4.5 times oversubscribed,” the ministry said in a statement.

The bonds are split into an eight-year tranche offering a 0.78 per cent yield and 20-year notes yielding 2.04 per cent, it added.

“One of the advantages of offering a euro bond is to increase the diversity of investors,” said Finance Minister Mohammed al-Jadaan.