Riyadh: Saudi Arabia raised $10 billion through its first Eurobond sale of 2023 on Tuesday.
The kingdom had garnered over $35 billion of investor orders for the notes maturing in five, 10.5 and 30 years as it seeks to take advantage of cooling inflation that’s raised hopes of an easier rate hike trajectory. The order book excludes any joint lead-manager interest.
The deal priced with the notes to yield 110 and 140 basis points over Treasuries and 5.5 per cent, respectively. Even before the kingdom’s offering, Gulf financial institution First Abu Dhabi Bank was able to chop the pricing on a dollar bond sale Monday. The Federal Reserve may lean toward smaller interest-rate increases after wage growth cooled in December, another step down in its aggressive campaign of monetary tightening.
Saudi Arabia expects to run a surplus of 16 billion riyals ($4.3 billion) in 2023, nearly double a previous estimate of 9 billion riyals, it said last month. The Kingdom last sold $5 billion in bonds and Islamic securities in October.
