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Less money mo’ problems for SaudiMENA

Less money mo’ problems for Saudi

Saudi Arabia recently raised $1.82b through the sale of euro-dominated bonds, as the Kingdom continues to diversify its financial base, all the while taking advantage of low interest rates. This is Saudi’s second bond deal in two months, after having raised $5b in January 2021.

Saudi’s Debt Management Center announced that the Kingdom raised €1b through three-year notes, set to mature in 2024 with a negative return of 0.06%, and €500m through nine-year notes, with a return of less than 1%.

why it matters
It seems borrowers are clutching on to euro debt due to the low cost and a large base of buyers in Europe looking to make a quick buck (or euro) outside of their region, and Saudi’s ready to capitalize.