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Saudi Aramco has received offers of more than $ 50 billion for its first sale of international bonds, which was to be in the region of $ 10 billion, sources close to the issue said.
The national oil giant markets a USD denominated debt issue divided into six tranches ranging in maturity from three to thirty years.
One source said demand had risen to $ 60 billion. This would be the highest value of the order book since a record Qatar issue last year, which had attracted about $ 52 billion worth of orders.
Before opening the books earlier on Monday, the Aramco issue – whose price will be set Tuesday – had already attracted more than $ 30 billion in demand, said Saudi Energy Minister Khalid Al-Hariri. Falih.
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People familiar with this case told the Reuters news agency that Aramco 's huge profits – almost three times those of Apple last year – implied that investors were willing to buy the bonds even if their yield was lower than that of the Saudi sovereign debt.
Last year, Aramco postponed to 2021 an initial public offering to raise money for a government seeking to reduce its budget deficit and diversify its economy beyond oil.
"The success of this bond issue will be a litmus test and a crucial precursor to Aramco's anticipated IPO in the next two years," said Salah Shamma, head of investment at MENA Equity at Franklin Templeton. .
Aramco met with investors last week at a global roadshow on the subject. Bonds, with maturities ranging from three to 30 years, are expected to attract demand from emerging markets and blue chip buyers.
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