Saudi Arabia plans to issue dollar bonds to increase borrowing to deal with the impact of the Iran war on its economy. According to a source familiar with the matter, Saudi Arabia will now issue two benchmark dollar-denominated Islamic bonds with terms of 5 and 10 years, respectively. The bond issue issued more than $9 billion in subscription orders, not including the lead underwriter's subscription share. According to people familiar with the matter, the initial price guide for 5-year bonds is about 100 basis points above the yield on US Treasury bonds, and about 110 basis points for 10-year bonds. Specific terms, such as the final issuance scale and pricing of the bonds, may be determined later on Tuesday. There were reports Monday that Saudi Arabia is in preliminary negotiations on a new loan to raise at least $8 billion.

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