Saudi Arabia plans new dollar bonds, sukuk; offers to buy existing notes

The Kingdom of Saudi Arabia's flag

Saudi Arabia plans to issue new USD-denominated bonds and sukuk and has made an offer to holders of existing bonds to buy them for cash, Reuters reported, citing a bank document.

The initial price guidance for the new notes is about 135 basis points over US Treasuries for six-year sukuk and about 180 basis points above US Treasuries for 10-year bonds, the document added.

It also indicated that BNP Paribas, Goldman Sachs and HSBC are global coordinators and joint bookrunners on the debt sale, while AlJazira Capital, CitiBank, JPMorgan and Standard Chartered are passive joint lead managers and bookrunners.

The amount accepted in the tender offer will be announced following the pricing of the new bonds and sukuk, expected later today, Oct. 18.

Meanwhile, Oct. 24 is the deadline for bondholders to participate in the tender offer and indicative results are expected next Oct. 25.