Riyadh- The Saudi bonds to be issued in the international markets are stepping towards a new success –Economic given forecasts that the bonds will attract high demand, amidst an increase of international confidence averages in the current financial condition in Saudi Arabia.
The huge demand on public bonds is an indicator of the strong economic condition of bonds issuing countries. International demand on public bonds reached USD67 billion worth USD17.5 billion. This means that the demand exceeded supply 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.
The specialized economist Sulaiman Assaf said that the Saudi bonds reinforced the solidity of the financial condition. “Issuing public bonds doesn’t mean that the government is obliged to take this step,” he told Asharq al-Awsat.
Saudi Arabia’s Ministry of Finance announced earlier developing an international program to issue bonds. As part of this program, local and international investment banks were mandated as lead managers and book runners on the Saudi bond sale.
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.