Saudi Arabia in huge new bond sale

Riyadh: Saudi Arabia on Thursday announced it had undertaken another multi-billion dollar bond sale to finance a persistent budget deficit left by low oil prices.

The world´s top crude oil exporter raised $12.5 billion (10.6 billion euros) in its third international bond issue, the finance ministry said.

It comes as Saudi Arabia pursues economic and social reforms including this week´s announcement that it will end a ban on women driving. The kingdom has already undertaken three "sukuk" Islamic bond issues this year -- including one international sale -- totalling around $15 billion.

Last year it raised $17.5 billion in its first global bond issue -- the largest ever by a single country. Previously it had sold domestic bonds. The latest issue was heavily oversubscribed with orders worth $40 billion, according to the finance ministry.

A slump in global oil prices resulted in massive budget shortfalls in 2014. Saudi Arabia has posted a budget deficit in each of the past three years and is headed for a fourth year in the red in 2017. The kingdom´s deficit topped $200 billion from 2014 to 2016, and it is forecast to post a $53 billion shortfall this year.