Saudi Arabia raised $12 billion through a three-part bond sale in global debt markets, drawing significant investor interest, according to a government statement on Tuesday (January 7). The funds will be used to help address the country’s budget deficit and reduce its debt.
The sale included bonds valued at $5 billion, $3 billion, and $4 billion with maturities of three, six, and ten years, respectively. The National Debt Management Center (NDMC) reported that the total order book reached approximately $37 billion, indicating strong demand for the offering.
“This transaction is part of NDMC’s strategy to diversify the investors’ base and meet the kingdom’s financing needs from international debt capital markets efficiently and effectively,” NDMC said.
“The bid-to-cover ratio reflects the strong demand of the kingdom’s issuances, confirming the investors’ confidence in the strength of the kingdom’s economy and its investment opportunities future.”
Saudi Arabia, the world’s leading oil exporter, has projected a fiscal deficit of $27 billion for 2025 as it continues to invest heavily in projects tied to Vision 2030, the kingdom’s transformative economic plan.
The latest bond offering also follows Saudi Arabia’s approval of its annual borrowing plan for fiscal year 2025, with an estimated funding requirement of $37 billion.
In addition, last week the kingdom announced it raised $2.5 billion from three foreign banks to meet its budgetary needs.
On Monday, the Public Investment Fund revealed plans to raise $7 billion through its inaugural murabaha credit facility as part of its medium-term capital-raising strategy, aiming to diversify funding sources and support its investment activities.
