Saudi Arabia’s first international debt offering this year – a $10 billion bond issue – saw 3.8 times oversubscription.
The Saudi National Debt Management Center (NDMC) said on Wednesday it received overwhelming response from investors for the global medium-term note issuance programme (GMTN).
The total order book reached over 38 billion, 3.8 times higher than the $10 billion bond issue. The debt issue was offered via a triple-tranche bond offering, with the value of the first tranche at $3.25 billion for a 5-year bond maturing in January 2028.
The second tranche will be for $3.5 billion for a 10.5-year bond maturing in July 2033, while the third tranche will be for $3.25 billion for a 30-year bond maturing in January 2053.
This transaction is part of NDMC’s strategy to diversify the investor base and meet the Kingdom’s financing needs from international debt capital markets efficiently and effectively.
The bid-to-cover ratio reflects the strong demand for the country’s debt issuances, showing investors’ confidence in the strength of the Kingdom’s economy and its investment future opportunities.
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