Saudi Arabia raised $11.5 billion through a four-tranche dollar bond sale, marking its first issuance this year as the kingdom continues with its economic diversification plans.
The first tranche is valued at $2.5 billion for a three-year bond and the second tranche totalled $2.75 billion for a five-year bond. The third tranche is valued at $2.75 billion with a 10-year tenure, while the $3.5 billion fourth tranche matures in 30 years.
The total order book for the issuance reached about $31 billion, which equals an oversubscription of 2.7 times, the National Debt Management Centre (NDMC) said in a statement on Tuesday.
"The bid-to-cover ratio reflects the strong demand for the kingdom's issuances, underscoring investor confidence in the strength of the kingdom's economy and its future investment opportunities," the NDMC said.
The transaction was conducted in line with Saudi Arabia's recently announced annual borrowing plan, which aims to diversify the investor base and meet its financing needs from international debt capital markets, it added.
Saudi Arabia's borrowing plan for 2026, announced on Friday, projects financing needs this year at $58 billion. This includes $44 billion to cover the anticipated deficit and $14 billion for principal repayments.
The kingdom aims to maintain debt sustainability, diversify funding sources between domestic and international markets through public and private channels by issuing bonds, sukuk, and loans at a fair cost, the Ministry of Finance said.
International bond sales are expected to account for about 25 per cent to 30 per cent of total borrowing, or between $14 billion to $18 billion. If the kingdom sticks to that, it would mark a slowdown in the rapid expansion of international issuance seen over the past several years, Emirates NBD economists said this week.
The kingdom was among the most active issuers of debt in the Middle East and North Africa last year.
In 2025, the government planned to borrow 139 billion riyals ($37 billion) but ended up raising more than 400 billion riyals, Emirates NBD said. The kingdom clarified that 61 billion riyals represented “pre-funding” for 2026 needs.
Saudi Arabia is investing heavily towards its Vision 2030 programme, aimed at cutting the kingdom's reliance on the sale of hydrocarbons and boosting non-oil sectors. It is focusing on industries such as infrastructure, real estate, tourism, mining and technology.
However, it has taken a more cautious approach towards spending as lower oil prices have constrained budgets, Emirates NBD said.
