Money Bigger Than The Justice, Saudi Sells Bonds Worth $7.5 Billion

Saudi Arabia, in its dollar bond sale, has raised $7.5 billion, which is the first since Saudi dissident Jamal Khashoggi was murdered in Istanbul. This transaction has been supported by numerous Western banks, including BNP Paribas, JPMorgan, HSBC, Citi and NCB Capital.

However, the Kingdom denies the involvement of Crown Prince, Mohammed bin Salman, but the CIA has concluded that he conspired the killing. Saudi Arabia has prosecuted various officials, who were allegedly involved in the case.

It also sparked an international uproar and, one could see the international investors boycotting the Kingdom. While a couple of big brands have shunned Saudi Arabia after the incident, some bond buyers are enticed by the lucrative investment opportunity in the world’s leading oil exporter.

As stated by the Saudi Ministry of Finance, the bond issuance was at least four times oversubscribed, with the order book topping at $27.5 billion.

Over $4 billion was sold by Saudi Arabia in 10-year notes maturing in 2029, along with $3.5 billion in 31-year notes, which are due to mature in 2050. The Gulf buyers could only buy 3 per cent and 2 per cent of the two issues, respectively, as per the availability.

Reuters reported that 40 per cent of the US-based investors purchased 2029 bond 45 percent of the 2050 debt.

Saudi Energy Minister Khalid al-Falih said in a statement: State-owned oil giant Aramco will issue bonds in the second quarter of 2019. The debt is expected to be issued in dollars.

The Wall Street Journal, referring to HSBC’s position, claimed that Khashoggi’s murder was dreadful, but also said that such incidents also happen in other countries.

Almost after a month of murder, Riyadh admitted that the killing of the Saudi-critic inside the premises of the Saudi consulate in Istanbul was pre-planned. The regime initially renounced the black-wash, calling it an accidental death during a fist-fight. The mortal remains of Jamal Khashoggi have still not been found. The humanitarian crisis of its war in Yemen also caught the world’s attention. Yet, the international companies are readily investing in the Kingdom, knowing the Saudi Crown Prince’s hands are covered with blood of thousands of innocent people.

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