(Bloomberg) -- China started marketing dollar bonds in Saudi Arabia, marking the country’s first debt sale in the US currency since 2021.

It’s offering the three-year and five-year securities with initial price guidance of about 25 basis points and 30 basis points over the respective US Treasury yields, according to people familiar with the matter. The Ministry of Finance said earlier this month that it plans to sell up to $2 billion of notes.

Saudi Arabia is an unusual venue for the sale, with London, New York and Hong Kong normally being picked for such transactions. But the choice comes after recent efforts to boost economic ties. Officials from both countries met earlier this year to discuss cooperation, and the warming relations can be seen in moves such as a doubling of investment in Saudi Arabia by China’s biggest steel producer.

“It is in line with two countries’ rising connections,” said Ting Meng, senior Asia credit strategist at Australia & New Zealand Banking Group. “The bond is in the same format as prior ones, but there could be more Middle East investors. The final pricing could be flat or even negative to US Treasuries,” she added.

According to an earlier bond-offering document seen by Bloomberg, the debt will trade on Nasdaq Dubai and be listed on the Hong Kong exchange.

China sold 2 billion euros ($2.1 billion) of notes in Paris in September, its first euro-denominated bond sale in three years.

In recent months, China has unveiled plans to support its ailing economy. Last week, the Ministry of Finance announced a $1.4 trillion bailout program for debt-straddled local governments, though it stopped short of more stimulus to lift domestic demand.

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