By Cristal Cody
Chicago, Oct. 19 – The Kingdom of Saudi Arabia sold a $5 billion two-part offering of sukuk and conventional bonds (A1//A) on Tuesday, according to a market source.
The first part of the offer was for $2.5 billion, in the form of a six-year sukuk with KSA Sukuk Ltd. as the trustee.
The 5.268% sukuk priced at par, with a 105 basis point spread to the benchmark Treasury.
Initial price talk was in the Treasuries plus 135 bps area.
For the $2.5 billion 10-year conventional bond, pricing came with a 5½% coupon at par, for a 150 bp spread over Treasuries. Price talk was in the Treasuries plus 180 bps area.
The deal was significantly oversubscribed with interest on the sukuk over $14.5 billion and the book on the conventional bonds above $12 billion.
The global coordinators and joint bookrunners are BNP Paribas, Goldman Sachs International and HSBC (billing and delivery) for the Rule 144A and Regulation S deal.
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.
Listing will be on the London Stock Exchange’s main market.
| Issuer: | Kingdom of Saudi Arabia
|
| Amount: | $5 billion
|
| Bookrunners: | BNP Paribas, Goldman Sachs International, HSBC (billing and delivery), Aljazira Capital, Citi, JPMorgan and Standard Chartered
|
| Trade date: | Oct. 18
|
| Settlement date: | Oct. 25
|
| Ratings: | Moody’s: A1
|
| Fitch: A
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Sukuk
|
| Amount: | $2.5 billion
|
| Issue: | Sukuk
|
| Maturity: | Oct. 25, 2028
|
| Coupon: | 5.268%
|
| Price: | Par
|
| Yield: | 5.268%
|
| Spread: | Treasuries plus 105 bps
|
| Price talk: | Treasuries plus 135 bps area
|
| ISIN: | XS2548889406, US48266XAF24
|
|
|
| Conventional
|
| Amount: | $2.5 billion
|
| Issue: | Bonds
|
| Maturity: | Oct. 25, 2032
|
| Coupon: | 5½%
|
| Price: | Par
|
| Yield: | 5½%
|
| Spread: | Treasuries plus 150 bps
|
| Price talk: | Treasuries plus 180 bps area
|
| ISIN: | XS2548892020, US80413TBA60
|
|
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