Saudi Arabia is paid to borrow in second-ever euro bond sale

Saudi Arabia is paid to borrow in second-ever euro bond sale

The world's largest crude-oil exporter sold 1.5 billion euros of bonds

Saudi Arabia joined the ranks of countries that get paid to borrow in euros as the outlook for the kingdom turns favorable with a recovery in oil prices.

The world's largest crude-oil exporter sold 1.5 billion euros of bonds ($1.8 billion), the second time it's issued debt in the common currency, after attracting orders for more than three times the notes on offer, according to a statement on the Finance Ministry's website.

The Chinese government, which has the same rating as Saudi Arabia from Moody's Investors Service, issued debt in euros at a negative rate for the first time last year.

1 billion euros of Saudi Arabia's three-year notes were priced at 40 basis points over midswaps, compared with initial price guidance of about 60 basis points, according to people familiar with the matter

500 million euros of nine-year securities were priced at 70 basis points over midswaps, compared with roughly 90 basis points at the start of the sale

The yields were minus 0.057 percent for the three-year debt and 0.646 percent for nine-year notes

Borrowers are clamoring for euro debt because of the relatively low costs and a hefty base of buyers in Europe looking for returns