Saudi Arabia sees offers of USD33bn for debut Sukuk issue
13 Apr 2017
(MENAFN) Saudi Arabia saw bids of USD33bn for its record-breaking debut sukuk issue, experiencing robust response from yield-seeking investors.
Additionally, the issue size of the sukuk could be USD8bn, spread across USD4bn each for the 5 year and 10 year tranche, after the kingdom raised USD17.5bn in Oct 2016.
Accordingly, there is a lot of liquidity amid investors that have rating constraints like Islamic banks, or large investors in Malaysia like Khazana, so they would find this issue attractive.
Moreover, the sukuk was priced at 100 basis points over mid-swaps for the 5-year tranche and 145 basis points over mid-swaps for the longer dated issue.