42781
Saudis to Host “Beauty Parade” of Lenders
World Economy

Saudis to Host “Beauty Parade” of Lenders

Saudi Arabia has summoned bankers to meetings in Riyadh next week as the oil exporter seeks to launch its debut international bond of about $15 billion as early as July.
Bankers briefed on the plans said that the ministry of finance and a newly-formed debt management office would be hosting a “beauty parade” of lenders on June 6-7 to hear proposals on how to organize the cash-strapped government’s first dollar-denominated bond, CNBC reported.
Banks expected to take part include the Bank of Tokyo-Mitsubishi, HSBC and JPMorgan Chase, which were lead lenders on the kingdom’s $10 billion loan in April. Others thought likely to take part in the talks include BNP Paribas, Citigroup, Deutsche Bank, Goldman Sachs and Morgan Stanley.
Riyadh could shortlist lead and second-tier arrangers as early as mid-June, one of the bankers said. The planned issuance, which could come as early as July, will include several tenors up to 30 years in maturity and would probably be followed by a further bond later this year and potentially another one next year, he said.
Growth in the country has slowed to about 1% of gross domestic product as the government has been forced to slash spending and deplete fiscal reserves to deal with the yawning budget deficit.
The unprecedented step of borrowing on international capital markets, as well as reflecting a stark fiscal crisis, is also part of a broader economic plan to diversify the economy by boosting the private sector and raising non-oil revenue. Although oil prices have recently risen to $50 per barrel from a low of about $27 in January, they are half the level they were in September 2014.

 

Short URL : http://goo.gl/ztypOE
  1. http://goo.gl/tcxDul
  • http://goo.gl/2GKloA
  • http://goo.gl/Oo1V21
  • http://goo.gl/DTi6Ix
  • http://goo.gl/8sbH1I

You can also read ...

The treasury department in Washington
Foreign governments pulled back their purchases of longer-term...
Brazil, India Corporate Debt at Risk of Default
A 200 basis-point increase in interest rates could spark a...
Six people including two former HBOS bankers were jailed last year.
An internal Lloyds Banking Group report written by a former...
Shares of petrochemical companies in Asia slumped on Tuesday, tracking the global equity downturn overnight.
The trade dispute between the world’s two largest economies...
BoK Hints at Rate Increase
Bank of Korea Gov. Lee Ju-yeol indicated Tuesday that the bank...
China Accuses Trump of Blackmail, Vows Strong Retaliation
China vowed to retaliate after President Donald Trump...
London Metals Cut Losses
London metals edged higher and Shanghai contracts cut early...
Mario Draghi
Mario Draghi promised that the European Central Bank will take...

Trending

Googleplus