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Saudi Amy's initial international bond issuance is expected to raise $12 billion, while the demand for subscriptions is more than $100 billion, which shows that the market's confidence in the company has broken the previous record, but the Saudi government's influence on the company worries investors.
The maturity of the bonds issued by Saudi Arabia and the United States ranges from three to 30 years. The bond issue is seen as a measure of investors'potential interest in the initial public offering (IPO) to be launched by Saudi Arabia and the United States.
Some fund managers said that the demand for subscriptions has swelled to more than $100 billion during the bond issuance process, which seems to set a record in the history of emerging market bonds. They pride themselves on the precedents of Qatar's $12 billion bond issuance last year, Qatar's $52 billion demand for subscriptions, Saudi Arabia's $67 billion initial bond issuance in 2016 and Argentina's $16.5 billion bond issuance in the same year, and Argentina's $69 billion demand order 。
Such a strong buying boom also shows that international investors have returned to Saudi Arabia. Saudi Arabian journalist Jamal Khashoggi was killed by Saudi agents in October last year, causing tensions between Saudi Arabia and Western countries. Since then, Saudi Arabia has been trying to get out of the shadows.
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