RIYADH: Saudi Arabia is heading to the international bond market for the third time this year to take advantage of low borrowing costs, Bloomberg has reported citing a person familiar with the matter.
The Kingdom is reportedly selling dollar-denominated sukuk maturing in nine and half years, as well as a 30-year conventional bond.
The deal may be priced on Tuesday, the person said.
BNP Paribas SA, Citigroup, Goldman Sachs Group and JPMorgan Chase & Co. are managing the sale.
The proceeds of the offering range between $4-8 billion, according to market conditions, and the final outcome depends on the demand of investors and financing requests to Saudi Arabia, a banking source told CNBC Arabia.
Saudi Arabia’s dollar bonds have a blended yield of 2.99 percent, compared with a five-year average of 3.3 percent, according to JPMorgan’s indexes.
Yield guidance is roughly 110 basis points above US Treasuries for the shorter tranche and 3.6 percent for the longer notes.
Saudi Arabia issued euro-denominated bonds in February and $5 billion of dollar debt in January.
