Aramco Order Book at $40 Billion for Dollar-Bond Sale
By Archana Narayanan , Brian W Smith , and Javier Blas
?8? ?april? ?2019? ?14?:?26? ?CEST Updated on ?8? ?april? ?2019? ?14?:?46? ?CEST
Oil giant is offering six-tranche debt from 3 to 30 years
World’s most profitable firm in market ahead of acquisition
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Saudi Aramco started the sale of its debut dollar bonds, drumming up an order book of about $40 billion, according to people familiar with the matter.
The oil giant is offering six-tranche debt, according to the people familiar with the matter, who asked not to be identified. The world’s most profitable company is tapping the market ahead of a planned $69 billion acquisition.
Initial Price Thoughts:
USD 3Y Fixed -- T+75 area
USD 3Y Floating Rate Notes -- Libor + equivalent
USD 5Y Fixed -- T+95 area
USD 10Y Fixed -- T+125 area
USD 20Y Fixed -- T+160 area
USD 30Y Fixed -- T+175 area
Demand for the most highly anticipated sale of the year already totaled $30 billion, Aramco Chairman and Saudi Energy Minister Khalid Al-Falih told Bloomberg TV on Monday. The state-owned oil giant and bankers spent the last week drumming up support for its offering at presentations in cities ranging from New York and Chicago to Singapore and Tokyo.
In a rare appearance that underlines the bond sale’s significance, JPMorgan Chase & Co.’s Chief Executive Officer Jamie Dimon spoke at a lunch in New York Thursday to market the deal, according to one of the people.
Aramco may raise about $10 billion from the sale, the kingdom’s energy minister said in January, as Saudi Arabia combines the oil producer with chemical maker Saudi Basic Industries Corp. The state-owned company was the world’s most profitable in 2018 with income of $111.1 billion -- more than Apple Inc., Google’s parent and Exxon Mobil Corp. combined.