Saudi Arabia's government is in talks with local banks to sell them SR20 billion ($5.3 billion) of local currency bonds next week, the Maaal financial website reported on Monday, citing unnamed sources.

A five-year tranche will yield 1.92 per cent, a seven-year portion 2.34 per cent and a 10-year tranche 2.65 per cent, according to Maaal.

Maturities and yields for this issue would be the same as in the government's last bond issue in September, which was also SR20 billion.

The new issue will bring to SR75 billion the amount of bonds issued by the government this year. It resumed issuing bonds in July for the first time since 2007 to cover a budget deficit created by low oil prices.-Reuters