Stock - Riyadh skyline / Saudi economy / Saudi Arabia
Stock - Riyadh skyline / Saudi economy / Saudi Arabia Image Credit: AFP

Saudi Arabia is looking to raise money through the sale of dollar-denominated sukuk to fund spending on Crown Prince Mohammed bin Salman's economic diversification drive.

According to a person familiar with the matter, the kingdom mandated banks to offer three, six, and 10-year notes in a three-part offering. The person asked not to be identified because they are not authorized to speak about it.

The bonds may yield between 85 and 110 basis points more than comparable US Treasuries, the person said.

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The country has said total funding activities for the year may reach around $37 billion, with capital that's raised helping to accelerate projects and programs of the Vision 2030 agenda.

The latest offering follows a $12 billion sovereign debt sale by Saudi Arabia in January.

The kingdom's record year for international bond issuance came in 2017, when it sold $21.5 billion, according to data compiled by Bloomberg.

Citigroup Inc., Goldman Sachs Group Inc. and BNP Paribas SA are bookrunners and global coordinators.

Moody's Ratings has Saudi Arabia at A1, the fifth-highest investment grade level, with a positive outlook.