Oil conglomerate Saudi Aramco has kicked off the new year with a $4 billion bond sale, divided into four tranches, as per a Reuters report on Tuesday.
Orderbooks registered a high of over $21 billion, suggesting investors are keen to purchase debt in one of Saudi Arabia’s largest end-to-end state-managed enterprises.
The update comes after a year of substantial activity for the company with a proposed minority investment in HUMAIN, the start of production from its Jafurah gas plant valued at $11 billion in a deal, and two bond sales—a $3 billion Sukuk issuance in September last year, and a $5 billion bond issuance before that in May.
The tranches were fixed at $500 million, $1.5 billion, $1,25 billion, and $750 million with maturities of three, five, ten, and thirty years, respectively.
Spreads over U.S. treasuries were fixed at 60 bps, 80 bps, 95 bps, and 130 bps over the same time periods. A spread in this instance is the premium over returns offered by U.S. Treasury bonds.
Active bookrunners for the bond issuance were Citi, Goldman Sachs, HSBC, JPMorgan, and Morgan Stanley.
At the time of writing, Saudi Aramco shares were closed for trading on Tadawul, fixed at a price of $25.26.