Saudi may issue $10 bln in bonds in Q4, says Al Tuwaijri

The Saudi finance ministry may tap the international bonds market in the fourth quarter this year with about $10 billion in bonds, vice minister of economy and planning Mohammed Al Tuwaijri told Bloomberg.

The exact issuance size will depend on market conditions and investor appetite, Al Tuwaijri said.

The Saudi government still plans to raise about SAR 70 billion this year to plug up its budget deficit.

"We believe actually the banks are pretty liquid nowadays and their ability to invest in government bonds is good," he said.

The government surveyed the market and determined 16 appropriate targets that are prime for privatization. They also pinpointed more than 100 public-private partnership opportunities, he said.

Four "low hanging fruits" will start the privatization process potentially this year, including the Saline Water Conversion Corporation, a power generation company under Saudi Electricity Co., the grain silos organization, and sports clubs.

The government is "very committed" to mega projects to help it meet Saudi Vision 2030 objectives, such as Jeddah’s new airport and Riyadh’s metro system, Al Tuwaijri added.