Saudi Arabia is selling a huge bond deal to international investors Wednesday. The country is, “borrowing out of the oil crash,” surmises research firm CreditSights . The country needs the cash infusion to staunch large budget deficits incurred due to the decline in oil prices. It’s the first time it has sold bonds to international investors, according to The Wall Street Journal, which is reporting the deal size is up to $17.5 billion in three maturities. The 10 year is expected to yield 1.85 percentage points more than the Treasury, or about 3.6%. CreditSights makes these additional points: $17.5 bn of new paper would account for 2.3% of the BAML EM USD sovereign index, with more issuance expected in the coming years. Without a sharp recovery in oil prices, Saudi external financing needs over the coming years are going to be very large and the country is likely to […]