Saudi Arabia raises $17.5 billion through first bond issue

The bond issue saw the Saudi Arabian government sell dollar-denominated bonds that are due in five years, set to yield 135 basis points more than the U.S. Treasury 10-year notes.

It was reported that the government raised a whopping $5.5 billion across each of its 5 and 10-year bonds.

The 30-year debt bonds helped raise another $6.5 billion.

One of the biggest benefits for the nation from issuing these bonds is to help reduce its debt burden.

Ranked as the world's biggest oil exporter, with $133.3 billion worth of crude oil exporter last year, it has been facing a huge dip in revenues due to declining oil prices.

The government is now looking to shift its economy from relying heavily on oil.

Rating agency Moody's has graded the oil kingdom at A1, touted to be the fifth-highest investment grade level.

The nation has nearly $73 billion in government debt as of last month, amidst decreasing oil revenues, which serves as the country's major income.

Economic institutions such as the IMF have forecasted that the country will gain GDP of about 1.2% this year.