Morning Commentary: New triple tranche of Saudi Arabia notes spurs secondary action

By Rebecca Melvin

New York, Sept. 27 – The Middle East and Africa region was active early Wednesday as investors eyed the launch of Saudi Arabia’s $12.5 billion offering of five-, 10- and 30- year notes for final pricing later in the day, according to a market source.

The addition of these notes will lift the size of the Saudi “secondary curve to a cool $39 billion,” the source said.

There was mixed performance in the Saudi existing notes. The Saudi 2022 and 2027 Sukuks were handily outperforming the conventional bond curve, and the new 2028 notes, with pricing seen at U.S. Treasuries plus 145 basis points, makes the 2027 notes look very rich, the source said.

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