Saudi Minister of Finance Mohammed al-Jadaan said Wednesday that Saudi Arabia’s successful offering of its inaugural euro-denominated international bond illustrates its position as a leader in the region and an important player in international debt capital markets.
The euro-denominated bonds are part of the Debt Management Office's (DMO) role to secure the Kingdom's financing needs at the best possible costs in the short, medium and long term, he added.
This will help achieve one of the strategic objectives of the Ministry in terms of the optimum use of state assets and innovative financing that contributes to the sustainability of the Kingdom's access to the various international markets at fair pricing.
He went on to say that the orderbook peaked at 13.5 billion euros, which was 4.5 times oversubscribed.
This highlights the strong demand of both existing and new investors in the EU region, showing their high level of confidence in Saudi government securities, which allowed the DMO to tighten the pricing range to reach a yield of 0.78% in the eight-year and 2.04% in the 20-year tranches, said Jadaan.
The Debt Management Office launched a non-deal road show visiting eight European cities: London, Paris, Milan, Frankfurt, Amsterdam, The Hague, Zurich and Munich; meeting 77 European investors during the nine-day trip. Major points of discussion were Saudi Arabia's continued progress in both the global and local capital markets, continued economic reforms and the Kingdom's commitment and progress forward towards achieving the Vision 2030.
Saudi Arabia has raised 3 billion euros from over 14.5 billion worth of orders for its first bond denominated in euros. The Saudi bonds are split into a 1 billion-euro eight-year tranche and a 2 billion-euro 20-year tranche.
