Saudi Arabia’s Ministry of Finance has issued SR20bn ($5.33bn) of government development bonds.

The tenors range from five to 17 years, with five-year bonds priced at 1.92 per cent, seven year bonds at 2.34 per cent and 10 year bonds at 2.65 per cent.

The move follows the issue of SR15bn of government development bonds by the Ministry of Finance in June.

The ministry is expected to issue up to SR20bn a month of bonds this year as the kingdom covers its budget deficit which is expected to reach SR145bn ($37bn) this year.

The bond issues are tightening liquidity in the kingdom. On 11 August the riyal fell to its lowest forwards market level against the US dollar since 2008.