SYDNEY  - China has mandated investment banks to work on a three- and five-year U.S. dollar bond issuance in Saudi Arabia, showed a term sheet reviewed by Reuters on Friday.

The issuance will be senior, unsecured fixed-rate bonds, subject to market conditions, the term sheet showed.

China's Ministry of Finance said earlier this week it would issue bonds worth no more than $2 billion in Saudi Arabia after receiving approval from the State Council.

(Reporting by Scott Murdoch; Editing by Jacqueline Wong and Christopher Cushing)