Saudi Arabia to Sell More Bonds as Lower Oil Hits Finances

Saudi Arabia is set to sell more international bonds, as it looks to cover a budget deficit caused by lower oil prices and high spending on the government’s economic-diversification drive.

The kingdom is offering dollar Sukuk, or Islamic debt, with maturities of five and 10 years, according to a person familiar with the matter. Initial price talk is around 95 basis points over US Treasuries for the shorter tranche, and 105 basis points for the longer one. The final details, including the size of the bonds and the price, may be decided later on Tuesday.