As result of war on Yemen, Saudi Arabia’s first Islamic bond sale raises $9bn

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In its first international issuance of sukuk, or an Islamic bond, Saudi Arabia has raised $9 billion, people familiar with the matter told the Wall Street Journal, as a result of war against Yemen.

Investors placed orders in excess of $33 billion, the country’s Ministry of Finance said, adding bonds will be split equally between five and ten-year tranches.

Riyadh was able to issue more than the $8 billion it had planned to sell, and yields were lower than initial guidance. The five-year notes were sold at 2.93 percent, and the 10-year notes were sold at 3.65 percent.

Saudi Arabia issued bonds worth $17.5 billion in 2016, tapping international and domestic markets to help finance a budget deficit that is expected to reach $53 billion this year.

By raising money from sukuk, the Saudi government aims to support the kingdom’s finances as war against, which have lost more than 400 billion $