Saudi bond sale: Top banks among lead managers

Deutsche Bank and Goldman Sachs are among banks hired to act as co-lead managers for the international bond sales, according to reports.
Updated 15 July 2016

Saudi bond sale: Top banks among lead managers

LONDON: Saudi Arabia appointed six banks as co-lead managers on its first international bond sale, according to people familiar with the matter.
The Kingdom hired Bank of China Ltd., BNP Paribas SA, Deutsche Bank AG, Goldman Sachs Group Inc., Mitsubishi UFJ Financial Group Inc. and Morgan Stanley to arrange the sale, the people said.
The banks will hold a meeting later this month to start working on the deal, two of the people said.
The managers will work with HSBC Holdings Plc, JPMorgan Chase & Co. and Citigroup Inc., who were said to have been appointed global coordinators last month for the sale of at least $10 billion of bonds.
Saudi Arabia plans to boost debt as it looks to plug an estimated shortfall of about $100 billion in its budget this year and fund an economic transformation plan.
Government debt levels will increase to 30 percent of economic output by 2020 from 7.7 percent, according to the government.
The plunge in crude is driving bond sales across the six-nation Gulf block as governments seek to fill fiscal gaps the International Monetary Fund says could reach $900 billion by 2021.
Kuwait, which plans to raise as much as $9.9 billion from a bond issue in September, is willing to liaise with Saudi Arabia on the timing of the sale, Finance Minister Anas Al-Saleh said in a phone interview Monday.
Qatar raised a record $9 billion in May and Abu Dhabi sold bonds worth $5 billion in April.
Spokesmen for Goldman Sachs, Morgan Stanley and Deutsche Bank declined to comment.
A spokeswoman for BNP Paribas also declined to comment.
MUFG didn’t immediately respond to an e-mail requesting comment.
A call to the London offices of Bank of China wasn’t immediately answered, while Saudi Ministry of Finance couldn’t be reached for comment outside of office hours.


Oil prices rise as faith in supply cuts grows

Updated 26 May 2020

Oil prices rise as faith in supply cuts grows

  • Producers are following through on commitments to cut supplies as fuel demand picks up with coronavirus restrictions easing
  • OPEC+ countries are due to meet again in early June to discuss maintaining their supply cuts to shore up prices

NEW YORK: Oil prices rose on Tuesday, supported by growing confidence that producers are following through on commitments to cut supplies and as fuel demand picks up with coronavirus restrictions easing.
Brent crude futures were up 45 cents, or 1.3%, at $35.98 a barrel by 1:09 p.m. EDT (1709 GMT). US West Texas Intermediate (WTI) crude futures gained 89 cents, or 2.7%, to $34.14.
The Organization of the Petroleum Exporting Countries and other leading oil producers including Russia, a group known as OPEC+, agreed last month to cut their combined output by almost 10 million barrels per day in May-June to shore up prices and demand, which has been hit by the coronavirus pandemic.
Russian Energy Minister Alexander Novak is due to meet oil major producers on Tuesday to discuss the possible extension of the current level of cuts beyond June, sources familiar with the plans told Reuters.
The RIA news agency said Russian oil production volumes were near the country’s target of 8.5 million bpd for May and June.
On Monday, Russia’s energy ministry quoted Novak as saying that a rise in fuel demand should help to cut a global surplus of about 7 million to 12 million bpd by June or July.
OPEC+ countries are due to meet again in early June to discuss maintaining their supply cuts to shore up prices, which are still down about 45% since the start of the year.
“The 16 million bpd oversupply in crude during April could be reversed altogether by June, helped by a 4 million-bpd recovery in crude demand and a 12 million-bpd cut in crude supply,” said Bjornar Tonhaugen, head of oil markets for Rystad Energy.
“OPEC+ is pulling the most weight by far, effectively reducing supply by nearly 9 million bpd while non-OPEC+ crude supply is down by more than 3.5 million bpd from March levels.”
In an indication of lower supply in the future, data from energy services business Baker Hughes showed that the US rig count hit a record low of 318 last week.