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The National Debt Management Centre announced that the issuance comprised $2.5 billion in three-year notes, $2.75 billion in five-year bonds, $2.75 billion in 10-year securities and $3.5 billion in 30-year paper. Orders for the bonds totalled approximately $31 billion, resulting in an oversubscription rate of 2.7 times, according to the NDMC statement. The strong demand underscores investor confidence in Saudi Arabia’s economic trajectory, the centre added in its release.
According to the Ministry of Finance, the 2026 borrowing plan totals $58 billion to cover a $44 billion budget deficit and about $14 billion in maturing debt obligations. The international bond component is expected to account for 25 per cent to 30 per cent of overall borrowing, or between $14 billion and $18 billion. This inaugural sale represents a significant portion of that target.
Emirates NBD Research noted that the pricing for the tranches came in tighter than initial guidance, with the three-year at 65 basis points over US Treasuries, the five-year at 75 basis points, the 10-year at 85 basis points and the 30-year at 110 basis points. Bloomberg reported that peak orders exceeded $29 billion before settling. The deal allows the kingdom to secure competitive financing costs amid global market conditions.
The finance ministry indicated that last year Saudi Arabia had planned to borrow $37 billion but ultimately raised more than $108 billion, including pre-funding for future needs. This pattern highlights the kingdom’s proactive approach to debt management, a Reuters dispatch noted. The latest issuance follows a similar January launch in 2025 that totalled $12 billion.
Proceeds from the bond sale will support ongoing projects aligned with Vision 2030, which aims to diversify the economy away from oil dependence into sectors such as infrastructure, tourism, mining and technology, according to official planning documents. A report from S&P Global Ratings has examined various scenarios for Saudi public finances in the context of these diversification efforts. The NDMC emphasised that the oversubscription reflects robust appetite for Saudi sovereign debt.
By mid-January 2026, Saudi Arabia had sold more than $20 billion in international bonds, setting a monthly record, Bloomberg figures show. This includes contributions from both the government and related entities like the Public Investment Fund. Such activity comes as the kingdom balances fiscal discipline with continued investment in its reform agenda.
