Saudi Arabia Wades Into Euro Bond Market as Part of Borrowing Spree

Saudi Arabia plans to issue a debut euro-denominated bond, part of a borrowing binge to meet the government’s ambitious spending targets, The Wall Street Journal reported. The bond is aimed at diversifying Saudi Arabia’s investor base, following predominantly dollar debt that has catapulted the kingdom up the ranks of emerging-market bond issuers. Subject to market conditions, Saudi Arabia is seeking to issue the bond in tranches of eight and 20 years, according to a marketing document provided by one of the arrangers Monday. The exact timing of the issuance isn’t clear. Saudi Arabia has turned to the international debt markets to help plug spending deficits caused by a collapse in oil prices. Over the past three years, Saudi Arabia has sold nearly $70 billion in international bonds, becoming one of the biggest issuers of debt among emerging markets. Read more