Saudi Aramco Bond Issue a Success with 10X Subscription

Saudi Aramco has received bids for more than 10 times the $10 billion it was expected to raise in a debut international bond issue, with the world’s largest oil producer due to set the price of its bonds later on Tuesday.

Initially, the six-part deal had been expected to be at least $10 billion in size, but a source familiar with the situation said that orders have topped $100 billion.

The first-ever debt issuance from Aramco has sparked massive global interest, with the move offering investors greater visibility into the financial performance of the world’s most profitable company. The offering comes ahead of plans to list a portion of Aramco on international stock markets in about two years.

Saudi Arabia’s state-controlled energy giant is marketing a landmark U.S. dollar denominated debt issue split into six tranches, with maturities ranging from three to 30 years.

via CNBC

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