Saudi Arabia

I’ve always considered myself a gent of superior taste and class. While I’m not averse to hanging out with the hoi polloi, I think it is no exaggeration to say that I’m considered one of Hong Kong’s respected elder statesmen.

Saudi Arabia’s debut bond was met on Wednesday with enormous demand as investors poured in over $67bn of orders for the triple trancher by mid-morning. The deal, set at $17.5bn, will be the biggest emerging markets sovereign bond ever as one EM specialist questioned how the 30 year piece in particular could be priced so tight.

The CEEMEA bond market exploded into life this week in what will be one of the busiest of the year. Saudi Arabia is leading the action with its much-anticipated bond but Turkey made an impressive comeback with four of its banks in the market following Friday’s sovereign trade. Further supply from Poland, Russia, the Middle East and Africa is adding plenty of diversity for investors.

As Middle Eastern countries reconfigure to lower oil prices, their funding needs could reach $560bn between 2015-2019, said S&P Global Ratings in a report on Monday.

Japanese technology giant SoftBank and the Public Investment Fund of Saudi Arabia have agreed to set up a UK-based technology fund for up to $100bn and have employed former bankers from Deutsche Bank and Goldman Sachs to help with the project.

Investor meetings for Saudi Arabia’s three tranche debut began in earnest this week, but with a rumoured $60bn to issue over three years, and rising concerns about the implementation of the country's 2030 plan, some dedicated EM funds are already preparing to sit out the imminent first megabond, writes Virginia Furness.

Some eight banks that arranged Saudi Arabia’s $10bn loan in May have secured berths on the sovereign's bond extravaganza that is due to kick off this week.

Saudi Arabia is lining up to meet investors for its long awaited mega-bond debut — a triple-tranche five, 10 and 30 year dollar issue — and a furious pricing debate has begun.

Saudi Electricity Company (SEC) signed a Sr5bn ($1.3bn) Islamic loan this week, having already secured $3.8bn in dollar loans this year.

Saudi British Bank (SABB) has completed its first dollar denominated syndicated loan, according to one banker, as the country's borrowers increasingly turn to international debt markets.

Abundant oil reserves transform a country’s economy. The results are not always positive — some sovereigns suffer from the “Dutch Disease”, which inhibits exports of non-oil goods through an appreciation in the real exchange rate. But overall natural resources, in particular oil and gas, prove to be a boon for the lucky country’s finances.

Foreign investors will be allowed to participate in Saudi Arabian IPOs from January, the country’s regulator said on Thursday in a move that has been signalled for some time but was nevertheless warmly welcomed by bankers.