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By IFR
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LONDON, May 19 (IFR) – The Kingdom of Saudi Arabia has sent banks a request for proposals for a potential US dollar bond, according to several sources.
The sovereign is expected to issue in the international capital markets sometime this year to fund a burgeoning fiscal deficit. Earlier this month, Saudi Arabia signed a US$10bn five-year bank loan, the government’s first significant foreign borrowing for over a decade.
JP Morgan, HSBC and Bank of Tokyo-Mitsubishi coordinated the loan, which pays an all-in margin of 120bp.
Saudi Arabia is rated A1 by Moody’s, A- by Standard & Poor’s and AA- by Fitch. All three agencies have cut the sovereign’s ratings in recent months, with S&P downgrading it by three notches since October. (Reporting by Sudip Roy (additional reporting by Michael Turner); editing by Julian Baker)
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