Saudi Aramco saw on Monday a strong demand in the first hours after the company offered indicative pricing for four-tranche dollar-denominated bonds, with combined order books for its 3-year, 5-year, 10-year, and 30-year bonds exceeding $10.5 billion, according to fixed income news service IFR.<\/p>\n\n\n\n
According to a document leaked from the Initial Public Offering (IPO), Aramco has developed a competitive primary profit margin reflecting its high creditworthiness.<\/p>\n\n\n\n
The Saudi oil giant\u2019s three-year debt has been initially priced at around 100 basis points over US Treasuries, while the five-year tranche is set at approximately 115 basis points over the benchmark.<\/p>\n\n\n\n
For longer-term debt, the 10-year bonds were initially priced at around 125 basis points over US Treasuries, and the 30-year bonds at around 165 basis points over the same benchmark, respectively, the document showed.<\/p>\n\n\n\n
The order book offering, which was quickly covered topping $10.5 billion before the markets closed on Monday, reflects institutional investors’ confidence in the financial strategy of the world’s largest oil company.<\/p>\n\n\n\n
The offering comes at a time when investors are looking for stable returns and heaven assets amid volatile geopolitical markets.<\/p>\n\n\n\n
These price margins are expected to narrow in the coming hours as the flow of orders continues, until a final pricing that will determine the total value of the bond issue.<\/p>\n","protected":false},"excerpt":{"rendered":"
Saudi Aramco saw on Monday a strong demand in the first hours after the company offered indicative pricing for four-tranche dollar-denominated bonds, with combined order…<\/p>\n","protected":false},"author":2,"featured_media":3710,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[15,47,16,4,7,366],"tags":[610,642,166,167,168,66],"class_list":["post-3755","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-energy","category-finance","category-international","category-mena","category-saudi-arabia","tag-aramco","tag-aramco-ipo","tag-energy","tag-gas","tag-oil","tag-saudi-arabia"],"yoast_head":"\n