Saudi Arabia offers to buy existing dollar bonds, plans new issuance

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Saudi Arabia plans to issue new US dollar-denominated bonds and sukuk and has made a tender offer to holders of existing notes to purchase them for cash, a London Stock Exchange filing and bank document showed on Tuesday.

Initial price guidance for the new notes was around 135 basis points (bps) over US Treasuries (UST) for six-year sukuk and around 180 bps over UST for 10-year conventional bonds, the bank document showed.

BNP Paribas, Goldman Sachs and HSBC are global coordinators and joint bookrunners on the debt sale, while Aljazira Capital, Citi, JPMorgan and Standard Chartered are passive joint lead managers and bookrunners.

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Saudi Arabia’s finance ministry also invited holders of its $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 maturing in 2026 to tender them for cash.

The amount accepted in the tender offer will be announced following the pricing of the new bonds and sukuk, expected later on Tuesday.

Monday is the deadline for bondholders to participate in the tender offer and indicative results are expected next Tuesday.

Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, raised $3 billion with green bonds in its debt markets debut earlier this month.

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