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JPMorgan, Citi get roles in $7.5B Saudi bond offering

Published 01/09/2019, 12:15 PM
Updated 01/09/2019, 12:15 PM
© Reuters.  JPMorgan, Citi get roles in $7.5B Saudi bond offering
  • BNP Paribas (PA:BNPP) (OTCQX:BNPQF -0.2%), JPMorgan (JPM +0.2%), HSBC (HSBC +0.6%), Citi (C +1.7%), and NCB Capital are arranging Saudi Arabia's international bond sale, the Wall Street Journal reports.
  • Banking documents call it a benchmark sale, meaning at least $500M principal amount will be sold, but Bloomberg reports the kingdom will sell $7.5B of bonds in two tranches, citing people familiar with the matter.
  • The spread on $4B of 10-year notes is 175 basis points over Treasuries, while the spread of the $3.5B 31-year bond portion is 230 bps, Bloomberg reports.
  • Saudi Arabia started its borrowing spree in 2016 when faced with declining income from oil production.
  • The bond sale is Saudi Arabia's first debt issue since the killing of journalist Jamal Khashoggi in October.
  • ETFs: KSA, FLSA
  • Now read: Avoid Citi, Stick With U.S.-Focused Banks And ETFs Instead


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