Orders for Saudi Aramco's debut bond sale reportedly reach $100bn

Aramco's bond issuance was reported to be around $10bn, but orders have far surpassed expectations

Saudi Aramco, SABIC, Fitch ratings, Khalid al-Falih

Orders for Saudi Aramco's debut bond sale have reached $85bn, the Financial Times reported, citing a banker close to the deal. It will close on Wednesday.

The bond size was expected to sit at $10bn, but before marketing the six-part bond deal, Khalid Al-Falih said that orders had already surpassed the $30bn mark

FT reported that orders "are skewed towards the bond sale’s longer tranches, with Aramco offering investors the chance to buy 20- and 30-year at higher yields."

As part of the bond issuance, Saudi Aramco opened its books, revealing that it is the world's most profitable company, with net income of $111bn in 2018.

Fitch Ratings, which gave Saudi Aramco an A+/Stable rating, said that "we assume the transaction will be funded largely from Saudi Aramco's free cash flows, and the company's leverage will remain very conservative by industry standards."

UPDATE: Reuters has reported that Aramco sold $12bn bonds, with more than $100bn in orders.


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