Saudi Offering Smashes Expectations Despite Oil Attacks

Saudi Arabia’s US$2.5-billion Islamic bond issued on Tuesday attracted orders worth more than US$13 billion in the first international debt issue since the attacks on vital Saudi oil facilities in the middle of September. On Tuesday, Saudi Arabia sold US$2.5 billion worth of Islamic bonds, or sukuk, returning to the bond market to take advantage of the low borrowing costs in hopes of replenishing its government coffers as persistently low oil prices depress revenues. The ten-year bond was priced at 127 basis points over the benchmark midswaps,…