Saudi Arabia is looking to tap the international debt market for a bank loan of $6-8bn. But given that its stretched finances have attracted the attention of the ratings agencies, Riyadh may face higher repayments.

Saudi Arabia repeatedly tapped the domestic sovereign debt market last year, raising a total of SR98bn ($26bn). It is expected to raise a further SR120mn ($32bn) in 2016, according to the latest update on the Saudi economy by Jadwa Investment.

Now, as part of its latest...