Saudi Arabia

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.

Mobile Telecommunications Company Saudi Arabia (Zain) has refinanced a syndicated loan it signed in June for a cheaper, longer dated bilateral deal from ICBC.

The Saudi British Bank (SABB) is syndicating a rare dollar loan co-ordinated by its 40% owner, HSBC. The loan is for $400m, one banker said.

Saudi Arabia could still print its widely anticipated bond in July, according to several EM syndicate bankers.

The International Islamic Financial Market (IIFM) and the International Swaps and Derivatives Association have added to the number of Shariah compliant hedging tools available to investors with two standards for Islamic forward foreign exchange products.

Saudi Arabia has released a request for proposals for its much anticipated international bond. GlobalCapital has details.