Saudi Arabia's first foray into the international bond market appears to be going well as the books get set to close on what could be a $15-20 billion deal.
The debt offering is expected to debut this week and is a key part of the kingdom's economic reform plan as it would give Saudi Arabia a sovereign benchmark that would help it open its capital markets for future offerings, such as corporate issues.
Saudi Arabian officials have been on a road show for the multi-tranche dollar offering since last week, and they met with investors in New York on Tuesday. According to price talk, the Saudi five-year note would tentatively come to market with a yield 160 basis points above the U.S. five-year Treasury note. The 10-year would tentatively be set at 185 bps above the U.S. 10-year, and the 30-year would be 235 bps above the U.S. long bond.