From Bloomberg
Saudi Arabia is considering selling as much as $15 billion of bonds this year in what would be the country’s first foray into international capital markets, people with knowledge of a matter said.
Encouraged by Qatar’s record issue last week, Saudi Arabia is weighing a sale of at least $10 billion in five-, 10- and 30-year bonds after Ramadan ends in July, the people said. No final decision has been made and the discussions are still at a preliminary stage, the people said, asking not to be identified as the talks are private.
Saudi Arabia’s Ministry of Finance didn’t immediately return calls seeking comment.
First Loan
The country is undergoing an economic shakeup, led by Deputy Crown Prince Mohammed bin Salman, as it prepares for the post-oil era. One of the government’s biggest challenges will be navigating the worst economic slowdown since the global financial crisis. Authorities are cutting spending to plug a budget deficit that reached about 15 percent of gross domestic product in 2015.
Saudi Arabia’s credit rating was reduced to A1 from Aa3 early this month in the second cut this year by Moody’s Investors Service. The kingdom’s rating was also lowered by Fitch Ratings and S&P Global Ratings earlier in 2016.
