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.
