Saudi Arabia attracted massive investor demand of about $67bn on Wednesday for its first international bond offer, as the world's top crude exporter allayed concern about the impact of low oil prices on its finances.

A source familiar with the offer said order books had come close to the $69bn record for an emerging markets bond issue that was set by Argentina in April this year.

Saudi Arabia is expected to raise up to $17.5bn through its bond offer, which involves five-, 10- and 30-year tranches, the source said. Argentina set the current record for an emerging market sovereign bond sale in April, selling $16.5bn.

The huge size of demand for Saudi debt was partly due to low global interest rates and funds' frustration with a lack of high-yielding assets around the world.

But Wednesday's debt sale also marked a success for Saudi Arabia in reassuring investors that it could stabilize state finances and reduce its dependence on oil. In the days before the sale, senior Saudi officials held a series of meetings with top investors in London and the United States.

Riyadh ran a record budget deficit of $98bn last year - 15pc of GDP - and is struggling to cut the gap this year. It turned to the international markets to finance part of its deficit this year, easing pressure on its foreign reserves, which it has been drawing down to pay its bills.