Saudi Arabia emerges as the first GCC sovereign to dominate international debt markets in 2026 with a multi-tranche offering within three-, five-, 10-, and 30-year tenors.
The kingdom, rated Aa3 (Stable) / A+ (Stable) (Moody’s/Fitch), is acting through the Ministry of Finance, for the senior unsecured Reg S issuance with initial price thoughts in the UST+95bps area for the three-year bond, followed by the five-year in the UST+100bps area, the 10-year in the UST+110bps area, and the 30-year in the UST+140bps area.
The three-year tranche has been assigned to HSBC as the bookrunner and the dealer, the five-year tranche to Citi, the 10-year to Goldman Sachs International, and the 30-year to JP Morgan.
The banks are joint global coordinators and joint bookrunners of the benchmark issuance together with the Bank of China, BNP PARIBAS, Credit Agricole CIB, and Standard Chartered as joint bookrunners and active lead managers.
The bonds are anticipated to be rated in accordance with the issuer and will be quoted on the main market of the London Stock Exchange, with the application of FCA / ICMA stabilization.
The capital will be used to fund domestic budgetary allocation as Saudi Arabia is in the run to complete several giga-projects ahead of its Vision 2030 initiative.
Saudi Arabia’s finance minister on Saturday granted the kingdom’s 2026 borrowing plan, with financing requirements estimating to 217 billion riyals ($57.86 billion).
The amount is projected to meet a projected budget deficit for the 2026 fiscal year of around $44 billion, and the repayment of principal will be due in 2026, estimating about $13.87 billion.
