Riyadh- While the massive international demand on Saudi public bonds has proven the advanced position of Saudi economy, the trading in the Saudi stock market jumped on Thursday around 129 points as a first reaction by local investors to bonds’ issuance.
High international demand on Saudi public bonds is irrefutable evidence that the Saudi economy now enjoys high credibility according to World countries, especially after the announcement of the Saudi Vision 2030 and economic reforms.
International demand on Saudi public bonds recorded high rates compared to the offered bonds. Figures revealed that demand reached USD67 billion for bonds worth USD17.5 billion—this means that demand exceeded the expected supply by 382%.
These figures reflect the Saudi credibility around the world and its attraction to overseas investments in Saudi public bonds, amidst international indicators forecasting a growth in the economy during 2017.
On the other hand, the Saudi Ministry of Finance announced pricing and allocating the first international bond offer within the newly developed program for bonds’ issuance.
Saudi Arabia attracted demand of about SAR251.3 billion (USD67 billion) for its first international bond offer, according to the Saudi Ministry of Finance figures.
These developments coincide with the Saudi Ministry of Finance completion of an international program for issuing bonds. As part of this program, local and international banks were mandated as lead managers and book runners.
Given its international and economic presence, Saudi Arabia has become a new destination for investments and an idol on the level of economic reforms.
Saudi Arabia relies on a financial power and massive foreign reserves; it has also maintained its rating classification from various international agencies despite the sharp drop in oil prices.
International Demand of Saudi Bonds Jumps 2.6%
No comments:
Post a Comment