Saudi Arabia markets six-year sukuk, 10-year conventional bond

Chicago, Oct. 18 – The Kingdom of Saudi Arabia has mandated bookrunners for a two-part offering of a six-year sukuk and a 10-year conventional bond (A1//A), according to a market source.

The sukuk trustee will be KSA Sukuk Ltd.

Both parts of the offering, coming in a benchmark size on each tranche, will be distributed via Rule 144A and Regulation S.

Initial price talk on the sukuk due Oct. 25, 2028 is in the Treasuries plus 135 basis points area. The 10-year bond, due Oct. 25, 2032, is being talked in the Treasuries plus 180 bps area.

The global coordinators and joint bookrunners are BNP Paribas, Goldman Sachs International and HSBC (billing and delivery).

The passive joint lead managers and bookrunners are Aljazira Capital, Citi, JPMorgan and Standard Chartered.

Proceeds will be used for general budgetary purposes and to finance the principal component of the bonds accepted for purchase in a concurrent tender offer.

The bonds are pricing Tuesday. Settlement is expected for Oct. 25.

Listing will be on the London Stock Exchange’s main market.

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