April 12, 2017 / 12:56 PM / 4 months ago

Saudi Arabia expected to raise US$8bn in debut sukuk

(Adds expected deal size and book size)

By Robert Hogg

LONDON, April 12 (IFR) - Saudi Arabia is expected to raise a total of about US$8bn in its debut US dollar sukuk offering, according to a lead.

The sovereign is selling five and 10-year tranches, which are expected to be about US$4bn each. The lead managers have set the spread at 100bp over mid-swaps for the shorter-dated note and plus 140bp for the longer-dated sukuk.

The five-year was initially marketed at plus 115bp area, and guidance was set at plus 105bp area.

Initial price thoughts for the 10-year were at plus 155bp area, and guidance was set at plus 145bp area.

The final order books are in excess of US$33bn, evenly split.

The deal will be priced later today.

Citi, HSBC (B&D) and JP Morgan are global coordinators. They are joined as leads by BNP Paribas, Deutsche Bank and NCB Capital.

The 144A/Reg S deal will be rated A1 by Moody's and A+ by Fitch. (Reporting by Robert Hogg; editing by Sudip Roy)

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