Saudi Arabia has raised $12.5bn from its second dollar bond sale of the year  in order to offset strains caused by the fall in oil prices. The sale is the largest debt sale so far this year by any emerging economy.

The sale on 27 September was divided into three tranches with the government selling  $3 billion of long five-year notes, $5 billion of the 10-year tranche and $4.5 billion of the 30-year offering.

The Kingdom raised $9 billion from the sale of Islamic bonds in April 2017 to help bridge a budget deficit, forecast at 198 billion riyals ($53 billion) this year, or 7.7 percent of economic output. It also raised 37 billion riyals in the past three months from domestic debt sales.  Proceeds from the bond sale will be used in helping to reduce the Kingdom’s budget shortfall and bolster foreign currency reserves.