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  • Orders for Saudi Aramco’s Debut International Bond Topped $100 billion in ‘Vote of Market Confidence’
     

    Orders for Saudi Aramco’s debut international bond topped $100 billion on Tuesday, Reuters reports, in what amounts to a  “record breaking vote of market confidence” for Aramco after facing investor concerns about government influence over the company. Al-Falih had previously said the $10 billion bond offering had been oversubscribed well above $30 billion. Demand appeared […]

     
  • Al-Falih Expects Strong Demand for Aramco’s First-Ever Bond Issue
     

    Saudi Arabia expects strong demand for Saudi Aramco’s first-ever bond issue, which is expected to close on Wednesday. Demand for the bonds could surpass $30 billion, Energy Minister Khalid Al-Falih said while speaking at the inaugural Gulf Intelligence Saudi Arabia Energy Forum in Riyadh on Monday. Others estimate it could top $40 billion, more than four […]

     
  • Saudi Arabia, Other Gulf Nations to Join JPMorgan Chase & Co.’s Emerging-Market Bond Indexes
     

    Saudi Arabia and four other Gulf nations will join JPMorgan Chase & Co.’s emerging-market bond indexes this month, Bloomberg reports, “potentially paving the way for billions of dollars in inflows into the securities.” The debt offerings from Saudi Arabia, Qatar, the United Arab Emirates, Bahrain and Kuwait will represent about 11.8 percent of the EMBI Global […]

     
  • S&P says Gulf countries need to raise $300 billion by 2021 – Report
     

    Gulf Cooperation Council (GCC) countries will need to raise about $300 billion between 2018 and 2021, with Saudi Arabia having the largest financing requirements, according to rating agency S&P as reported in Reuters. According to a Reuters report, the S&P expects 70 percent of the $300 billion of combined funding needs to be raised through debt […]

     
  • Saudi, UAE, Kuwait to Support Bahrain Economy after Downturn
     

    Saudi Arabia, Kuwait and the United Arab Emirates will soon announce an “integrated program” to support Bahrain’s economic reforms and its fiscal stability, Reuters reports, citing a joint statement from the three Gulf states on Tuesday. Like other oil producing nations whose state finances are closely tied to oil prices, Bahrain’s economy was hit hard […]

     
  • Saudi, Qatar Bond Issues Get Cozy; Both Oversubscribed
     

    Saudi Arabia beat out regional rival Qatar’s first bond issuance since the Gulf crisis began with its own “surprise” $11 billion raise, which drew $52 billion of orders this week, according to reports. Saudi Arabia denies that the timing of the quick-fire raise was not aimed at damaging Qatar’s issuance. The Saudi debt management office told the […]

     
  • Third Monthly Issue of Domestic Sukuk Raises $1.9 Billion, Finance Ministry Says
     

    Saudi Arabia’s finance ministry issued 7 billion riyals ($1.9 billion) of Islamic bonds in its third monthly issue of domestic sukuk, the ministry said Monday. Reuters reports the issue comprised 2.4 billion riyals ($640 million) of five-year sukuk, 3.9 billion riyals ($1.04 billion) of seven-year and 0.7 billion riyals ($190 million) of 10-year sukuk. Bids for […]

     
  • Saudi Arabia’s Vice Minister of Economy and Planning Mohammed Al Tuwaijri Gives Interview to Bloomberg News
     

    Saudi Arabia’s powerful vice minister of economy and planning Mohammed Al Tuwaijri gave an interview to Bloomberg News on Tuesday and discussed the government’s borrowing plans, infrastructure spending and how the kingdom still intends to balance its budget by 2020. Al Tuwaijri, who is also head of the finance committee at Saudi Arabia’s powerful Council of Economic […]

     
  • Saudi Economic Data for February Paints Another ‘Mixed Picture’
     

    Saudi Arabia’s economic data for the month of February 2017 showed a mixed picture for the Kingdom, with foreign reserves falling to $514 billion in February, the lowest since August 2011. The latest Jadwa Investment monthly chartbook for February finds cash withdrawals from ATMs and POS transactions showed a downward trend, but non-oil PMI was […]

     
  • For Saudi Arabia’s 2017 Budget, Jadwa Investment Sees ‘Expansionary Fiscal Stance’
     

    Saudi Arabia unveiled its 2017 budget last week with a budgeted SR890b ($237.2b) in spending, which is a SR50b ($13.3b) increase over the 2016 budget of SR840b ($223.8b). In a note sent to investors, Riyadh-based Jadwa Investment released a report outlining Saudi Arabia’s efforts to reduce its deficit despite the increase in spending. Based on revenues […]

     

MUST-READS

  • NDMC Announces Completion of First Partial Repurchase Offer for the Kingdom’s Dollar-Denominated Bonds

    NDMC, on behalf of the Ministry of Finance, announces the completion of the first partial repurchase of the Kingdom’s outstanding U.S. dollar-denominated bonds maturing in 2023, 2025, and 2026 with a total value of USD 1.268 billion (equivalent to SAR 4.755 bn).

  • Emirates NBD sells $500 million in 5-year bonds

    Dubai's biggest bank Emirates NBD sold $500 million in five-year bonds in its first public debt sale of the year which received more than $1 billion in orders, a bank document showed on Tuesday. The bank tightened the final spread by 20 basis points to 155 bps over U.S. Treasuries for the bonds sale arranged by Abu Dhabi Commercial Bank, Barclays, Emirates NBD Capital, HSBC, SMBC and Standard Chartered Bank. The sale came as Saudi Arabia and Abu Dhabi sovereign wealth fund Mubadala also issued bonds on Tuesday.

  • Saudi Arabia returns to debt markets with dollar sukuk and bonds

    The top oil exporter’s first bond sale since November comes amid turbulent markets and heightened tensions with Washington over an OPEC+ oil production cut, as Riyadh gears up to host its annual flagship investment conference next week. Initial price guidance for the new notes was around 135 basis points (bps) over U.S. Treasuries (UST) for six-year sukuk and around 180 bps over UST for 10-year conventional bonds, the bank document showed.

  • Saudi Arabia returns to debt markets with dollar sukuk and bonds

    The top oil exporter’s first bond sale since November comes amid turbulent markets and heightened tensions with Washington over an OPEC+ oil production cut, as Riyadh gears up to host its annual flagship investment conference next week. Initial price guidance for the new notes was around 135 basis points (bps) over U.S. Treasuries (UST) for six-year sukuk and around 180 bps over UST for 10-year conventional bonds, the bank document showed.

  • Perspective: Ex-empires Iran and Russia forge new bonds as both blame their woes on the West

    Yet, in practical terms, Russia-Iran cooperation is still not terribly robust. Apart from the Iranian-made combat drones that Russia is using to calamitous effect in Ukraine, trade between the two countries is still minimal—only worth about $4 billion in 2021. Iran has gotten guaranteed supplies of Russian wheat in return for its failure to condemn Putin’s aggression against Ukraine, but most Iranians still hold Russia in low regard. If the ruling clerics are looking north and east, Iranians still look west, where most members of the Iranian diaspora live. The disdain young Iranians demonstrate every day for their decrepit rulers is palpable and the fear of what might follow the Islamic Republic seems to be diminishing.

  • Saudi Arabia’s wealth fund hires banks for debut green bonds

    Saudi Arabia's sovereign wealth fund, the Public Investment Fund (PIF), has hired banks including Citi and JPMorgan to arrange a debut issuance of multi-tranche U.S. dollar-denominated green bonds, a document showed on Tuesday. Sources told Reuters earlier this month that PIF would issue the long-planned green bonds this month or in October.

  • Saudi wealth fund to issue green bonds as soon as next week – sources

    PIF in February announced a green finance framework that showed net proceeds from a debt sale would go towards eligible projects, including in renewable energy, clean transport and green buildings.

  • Aramco Oil Pipelines investors expected to raise $3.5-4.4 bln via bonds

    A group of institutional investors that last year took a stake in Saudi Aramco's oil pipelines network is expected to raise between $3.5 billion and $4.4 billion via a sale of dual-tranche amortising bonds on Thursday, a bank document showed. Initial price guidance was around 185 basis points (bps) over U.S. Treasuries (UST) for a tranche maturing in 14-1/2 to 15 years, and around 235 bps over UST for paper maturing in 24-1/2 to 25 years, the document from one of the banks on the deal showed.

  • Egypt’s Bonds Poised for an Influx of Passive Cash, Double-Digit Returns

    JPMorgan Chase & Co. will add Egypt -- which has $26 billion of eligible government bonds -- to a group of indexes this month, setting the market up to receive an influx of cash from passive money managers. Investors have already been enticed by Egypt’s hefty interest rates, which rank as the highest in the world after adjusting for inflation.

  • EIG-led investors in Aramco oil pipelines hire banks for dual-tranche bonds

    A group of institutional investors that last year took a stake in Saudi Aramco's oil pipelines network has hired Citi (C.N) and JPMorgan (JPM.N) to help refinance a loan that backed the deal, bank documents and an investor presentation showed on Monday. A consortium led by U.S.-based EIG Global Energy Partners in June bought 49% of the Aramco Oil Pipelines Company set up by Saudi Aramco, which holds the remaining 51% stake. As part of the deal, Aramco struck a 25-year lease and leaseback arrangement with the pipelines group.