DUBAI Oct 10 Saudi Arabia, which is financing
part of a budget deficit caused by low oil prices with
government bonds, will trade the bonds on its stock exchange,
the finance ministry said on Monday.
The move may make it easier for the government to issue debt
by allowing more types of investor to buy bonds. Since late
2015, the government has offered about 20 billion riyals ($5.3
billion) of domestic bonds to local banks every month, but the
banks have found it increasingly hard to buy all the bonds as
cheap oil has tightened liquidity.
Government bonds will be registered, listed and traded on
the exchange's platform gradually, the finance ministry said
without giving details.
Saudi Arabia has set plans to begin meeting with foreign
investors this week before making its first international bond
issue. It may sell around $10 billion or more of those bonds in
one of the largest debt sales by an emerging market economy
The ministry's statement did not say whether the U.S. dollar
bonds could be listed on the Saudi exchange or whether the
government would choose to do this.
(Reporting by Andrew Torchia, editing by Larry King)