Saudi Arabia Secures $12B In Largest Foreign Debt Borrowing Since 2017
Portfolio Pulse from Benzinga Neuro
Saudi Arabia has issued $12 billion in debt, its largest foreign borrowing since 2017, contributing to the $25 billion of bonds issued by developing countries this year. The move aims to cover more than half of the nation's fiscal deficit for the year. Citigroup Inc. (C), JPMorgan Chase & Co. (JPM), HSBC Holdings Plc (HSBC), and Standard Chartered Plc (SCBFF) were the main banks handling the sale. Despite this borrowing, Saudi Arabia's total funding requirements are only partially met, but the country's debt stock remains low, allowing for further capital raising. Additionally, Saudi Arabia has cut oil prices significantly, impacting crude oil markets.
January 09, 2024 | 8:58 am
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POSITIVE IMPACT
Citigroup Inc. was one of the main banks handling Saudi Arabia's $12 billion debt issuance, which could reflect positively on the bank's revenue from investment banking fees.
Being one of the main banks in a significant debt issuance usually results in substantial fees, which could positively impact Citigroup's investment banking revenue in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
HSBC Holdings Plc participated in managing Saudi Arabia's $12 billion debt issue, which may enhance its income from underwriting and advisory services.
HSBC's involvement in the debt sale could result in increased underwriting fees, which would have a positive impact on the bank's short-term earnings.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
JPMorgan Chase & Co. was involved in Saudi Arabia's recent $12 billion debt sale, which is likely to contribute to the bank's earnings from underwriting services.
JPMorgan's role in the debt issuance could lead to increased revenue from underwriting fees, positively affecting its short-term financial performance.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Standard Chartered Plc was one of the banks managing the $12 billion Saudi debt issuance, potentially benefiting from the associated underwriting fees.
As a managing bank of the debt issuance, Standard Chartered is expected to earn fees, which could positively influence its short-term financial results.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70