Monday, November 16, 2015

Oil: Both Saudi Arabia and Bahrain Planning Debt Issues

Brent $44.21, down 26 cents; WTI $40.59, down 15 cents.
First up, Reuters Nov. 10:
* Banks have been discussing matter since early this year
* Domestic bond issues began in July
* Discussing creation of debt management office
* Initial issue might be $1-2 billion - Gulf source
* Could issue two to four times a year (Adds more sources, context)
UPDATE 1-Saudi aims for first foreign bond as soon as next year -sources
Saudi Arabia aims to start selling bonds in the international market as soon as next year as it seeks new ways to cover a budget deficit caused by low oil prices, banking industry sources said on Tuesday. 
The sources, who have been discussing the matter with officials in the central bank, the Saudi Arabian Monetary Agency (SAMA), said authorities had not yet finalised the plan but were making progress. 
"If it's going to be January, June or 2017, I'm not sure," said a senior Gulf banker, declining to be named because of commercial sensitivities. "But it's something that's top of their minds."
A Saudi commercial banker said bankers were pitching to both the finance ministry and SAMA. 
"The ministry ... is borrowing but SAMA would be the issuer. In my opinion, I don't think there will be a mandate til next year," he said....MORE
The Kingdom of Bahrain has mandated Bank ABC, BNP Paribas, Citigroup, HSBC and JP Morgan to arrange investor meetings ahead of a potential RegS/144a U.S. dollar benchmark bond. 
The sovereign is acting through its Ministry of Finance and will meet investors across Asia, the Middle East, the U.S. and the UK, beginning on Tuesday.
Bahrain is rated BBB-/BBB-. (Reporting by Robert Smith)