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By Davide Barbuscia and Rania El Gamal
DUBAI, April 9 (Reuters) – Orders for Saudi Aramco's first international bonds have exceeded $ 85 billion, sources close to the record said, a record of market confidence for the oil giant.
Aramco is expected to raise about $ 10 billion on the deal, which will be priced on Tuesday and is seen as an indicator of potential investors' interest in the Saudi company's future public offering.
Saudi Energy Minister Khalid al-Falih said early indications of interest in the newspaper were more than $ 30 billion.
Demand for paper was the most important for emerging market bonds since an order book value of more than $ 52 billion for Qatar's $ 12 billion bonds last year.
Aramco's bonds attracted demand from a wide range of investors, as Aramco's huge profits would put its debt – if it were not constrained by its sovereign ties – in the same category as the major oil groups like Exxon Mobil and Shell.
This issue follows Aramco's $ 69.1 billion acquisition of a 70% stake in the Saudi Basic Industries Corp (SABIC) petrochemical company from the Saudi sovereign wealth fund. an agreement that many see as a transfer of public funds to the Crown's Economic Program.
"This link is for two reasons: to establish Aramco's status as an independent brand image and to allow the transfer of the company's wealth," said Marcus Chenevix, an badyst at MEN Lombard and head of political research. worldwide at TS Lombard.
Aramco, however, said the bond issue was unrelated to the acquisition of SABIC and many see it as an exercise in strengthening relations with international investors in anticipation of its initial public offering scheduled for the year last and then postponed to 2021. (Report of Davide Barbuscia and Rania El Gamal, edited by Kirsten Donovan and Susan Fenton)
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