From: Richard Kahn To: "jeffrey E." <[email protected]> Subject: Fwd: Saudi Date: Wed, 17 Aug 2016 22:07:35 +0000 Attachments: Saudi Arabian Constrained_by_the_Impossible_Trinity.pdf; Saudi_Arabia_- _beyond_oil_but_not_so_fast.pdf Inline-Images: image001.png Richard Kahn HBRK A. s iat s In . Begin forwarded message: From: "Ens, Amanda" < Subject: RE: Saudi Date: August 17, 2016 at 5:31:17 PM EDT To: Richard Kahn < Rich, I'm sorry for the delay. The bond issue is expected to come next month but it hasn't been launched yet. BofAML has not been named as a bookrunner yet. Reuters reports it might come close to being as large as Argentina's $16.5bn in April. They also mention a guesstimate of the potential spread being 80-90bp wider than Qatar (Qatar issued 10 year bonds at 150bp spread over Treasuries in May). http://www.cnbc.com/2016/08/17/reuters-america-mideast-debt-saudi-other-issuers-gear-up-as-gulf-bond- crush-looms.html The trading desk and I will be on the lookout for news about the bond as it comes out. In the meantime, please let me know if you'd like to discuss Saudi fundamentals and economics. In GIO, we had done some Saudi trades with CDS and FX (bearish on Saudi credit and currency). I've attached our research analyst's recent reports about Saudi Arabia. He wrote on August 12 that "Liquidity relief on the back of the upcoming external bond issuance could be used by accounts bearish on oil or SAR prospects as an opportunity to re-initiate payers in rates and speculative and hedging positions in SAR Fx forwards, in our view" (page 2 of the attached Saudi Arabia — Constrained by the Impossible Trinity). Below is an article from Bloomberg. Regards, Amanda Saudi Arabia Said to Tap JPMorgan, Citi, HSBC on Dollar Bond (1) 2016-06-27 06:38:17.320 GMT By Archana Narayanan, Stefania Bianchi and Dinesh Nair EFTA00821126