KHOBAR/DUBAI, Aug 11 (Reuters) - Saudi Arabia's latest sovereign bond issue, worth up to 20 billion riyals ($5.33 billion), will be allocated on Tuesday after it was priced the previous day, three sources familiar with the matter said.

The Gulf state is selling the debt, only its second such issue since 2007, as part of efforts to close a budget deficit caused by lower oil prices, which the International Monetary Fund estimates will amount to around $150 billion in 2015. ID:nL5N0ZV2O3

While the size of issuance is yet to be disclosed, the Saudi Arabian Monetary Authority - the kingdom's central bank - has set the final pricing for the five-year tranche at 1.92 percent, or 32 basis points above U.S. treasuries with a similar maturity, according to the three Saudi-based sources, who spoke on condition of anonymity as the information has not been made public.

The seven-year portion of the issue has been priced at 2.34 percent or 39 bps, with the 10-year debt set at 2.65 percent or 46 bps over similar U.S. Treasuries, the sources added.

The Saudi Arabian Monetary Authority could not be reached for comment.

The bond sale was open to commercial banks for the first time since the sovereign returned to the capital markets. The first tranche of debt was placed exclusively with state-controlled financial institutions when it was sold last month. ID:nL5N10K0GB

($1 = 3.7502 riyals)

(Reporting by Reem Shamseddine and Archana Narayanan; editing by Andrew Roche) ((archana.narayanan@thomsonreuters.com; +971 445 36240; Reuters Messaging: archana.narayanan.thomsonreuters.com@reuters.net))

Keywords: SAUDI SOVEREIGN/