RIYADH: Saudi Arabia is planning to issue new bonds and sukuk denominated in US dollars while offering their holders the opportunity to acquire existing notes in exchange for cash.
The price guidance for the new notes was around 135 basis points over US treasuries for sukuk and 180 basis points over US Treasury bonds for conventional bonds, respectively, according to London Stock Exchange filings.
Saudi Arabia’s finance ministry has also extended a tender call to holders of the country’s $3 billion bonds due in 2023, $4.5 billion notes due in April 2025, $2.5 billion bonds due in October 2025, and $5.5 billion notes due in 2026.
The amount of the tender offer that will be accepted will be revealed following the pricing of the new bonds and sukuk, which is expected later today.
Early this month, Saudi Arabia’s sovereign wealth fund issued green bonds to raise $3 billion.