By Rebecca Melvin
Concord, N.H., Nov. 10 – Kingdom of Saudi Arabia, acting through the Ministry of Finance, priced $3.25 billion of notes in two tranches (expected ratings: A1//A) on Wednesday, including a 9.5-year Islamic bond, or sukuk, and a 30-year conventional note, according to two post-stabilization notices and a market source.
The $2 billion sukuk, issued by KSA Sukuk Ltd., priced at 99.229 and had a distribution rate of 2¼%. Its reoffer yield is 2.341% for a yield spread of Treasuries plus 90 basis points.
Pricing came at the tight end of final guidance, which was at Treasuries plus 90 bps to 95 bps.
The $1.25 billion 3¼% conventional bond priced at 97.931 for a reoffer yield of 3.36% yield and a spread over Treasuries of 153.8 bps.
Pricing was wide to final guidance between 3.35% and 3.4%, which had been trimmed from earlier talk in the 3.6% area.
J.P. Morgan Securities plc, BNP Paribas, Citigroup and Goldman Sachs International were global coordinators and joint bookrunners of both issues.
MUFG and SMBC Nikko were passive joint lead managers and joint bookrunners of the conventional notes and they were also passive joint lead managers and joint bookrunners of the sukuk together with Al Rajhi Capital.
The notes are expected to be listed on the London Stock Exchange.
| Issuer: | Saudi Arabia
|
| Issue: | Sukuk, conventional notes
|
| Amount: | $3.25 billion
|
| Global coordinators: | J.P. Morgan Securities plc, BNP Paribas, Citigroup and Goldman Sachs International
|
| Joint bookrunners: | MUFG and SMBC Nikko (all tranches); Al Rajhi Capital (sukuk only)
|
| Pricing date: | Nov. 10
|
| Settlement date: | Nov. 17
|
| Ratings: | Moody’s: A1
|
| Fitch: A
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Sukuk
|
| Issuer: | KSA Sukuk Ltd.
|
| Amount: | $2 billion
|
| Maturity: | May 17, 2031
|
| Distribution rate: | 2¼%
|
| Price: | 99.229
|
| Yield: | 2.341%
|
| Spread: | Treasuries plus 90 bps
|
| Talk: | Treasuries plus 90 bps-95 bps
|
| ISINs: | XS2408477797, US48266XAE58
|
|
|
| Conventional notes
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| Issuer: | Saudi Arabia
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| Amount: | $1.25 billion
|
| Maturity: | Nov. 17, 2051
|
| Coupon: | 3¼%
|
| Price: | 97.931
|
| Yield: | 3.36%
|
| Spread: | Treasuries plus 153.8 bps
|
| Price talk: | 3.35%-3.4%, down from talk in the 3.6% area
|
| ISINs: | XS2408613136, US80413TAZ21
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