Menu

Veni, Vidi, Vici – KSA Enters The EM World In Style!

24 October 2016

The Latin scholars among you will know that “Veni, Vidi, Vici” translates into “I came, I saw, I conquered”, as Julius Caesar is famously quoted as having said to the Roman Senate. In a similar vain, Saudi Arabia’s blockbuster sovereign bond issue truly conquered the emerging markets fixed income space last week! As the largest EM sovereign bond issuance in history, KSA’s super jumbo deal was without doubt a landmark transaction.

Last Wednesday (19th Oct) the Kingdom printed $17.5bn in a 3-tranche deal, overtaking Argentina’s record $16.5bn issue from April this year to become the biggest single bond sale in the emerging markets space. The Saudi deal is also the largest offering from the Middle East beating Qatar’s previous record of $9bn from earlier this year. The KSA deal managed to generate a record order book of circa $67bn making the deal some 4 times oversubscribed, which in itself says a lot about investor interest in the transaction.

In this note we take a look in the rear view mirror and examine how the new Saudi paper stacks up against its GCC peers, and importantly how it has been trading in the secondary markets since it was free to trade on Thursday of last week. The charts below also provide some comparison of how GCC sovereign bonds are placed relative to their sovereign peers in the EM space.

KSA-bond-issue-review1

KSA-bond-issue-review2

KSA-bond-issue-review3

KSA-bond-issue-review4

KSA-bond-issue-review5

Market Insights & Strategy
Global Markets

National Bank of Abu Dhabi
MarketInsights&Strategy@nbad.com
Tel: +971 2 6110 127

Click here to download the article in PDF

Veni, Vidi, Vici – KSA Enters The EM World In Style!

Related Content

Disclaimer:
To the fullest extent allowed by applicable laws and regulations, National Bank of Abu Dhabi PJSC (the “Bank”) and any other affiliate or subsidiary of the Bank, expressly disclaim all warranties and representations in respect of this communication. The content is confidential and is provided for your information purposes only on an “as is” and “as available” basis and no liability is accepted for or representation is made by the Bank in respect of the quality, completeness or accuracy of the information and the Bank has undertaken no independent verification in relation thereto nor is it under any duty to do so whether prepared in part or in full by the Bank or any third party. Furthermore, the Bank shall be under no obligation to provide you with any change or update in relation to said content. It is not intended for distribution to private investors or private clients and is not intended to be relied upon as advice; whether financial, legal, tax or otherwise. To the extent that you deem necessary to obtain such advice, you should consult with your independent advisors. Any content has been prepared by personnel of the Global Markets division at the Bank and does not reflect the views of the Bank as a whole or other personnel of the Bank.