Aramco gets $100b in orders for bond deal

Bloomberg

Saudi Arabian oil giant Aramco received more than $100 billion in orders for its maiden global bond.
The bond sale, the most highly anticipated in recent memory, is set to be the largest-ever in emerging markets and one of just a handful of times that a company anywhere in the world received more than $100 billion in bids for a debt offer. It’s a clear sign of investors’ hunger for yield in a world where bonds from some developed nations — and even companies — have negative interest rates.
The anticipated low pricing and strong order book underscore the financial strength of the world’s largest — and most profitable — oil company.
Aramco’s bond sale dominated the attention of fixed-income investors globally and may have even weighed on the market for US Treasuries.
Aramco received the strongest demand for longer-dated, highest-yielding bonds, which are effectively a bet on Saudi Arabia and oil around the year 2050. Longer-dated bonds are usually popular with pension funds and insurance companies seeking to match the duration of their assets and liabilities. Aramco told investors it would sell debt in six portions, from three to 30 years, according to people familiar with matter.
Given the massive demand, Aramco told investors on Tuesday it expects to pay about 1.1 percentage points more than US Treasuries for its 10-year notes., compared with Saudi sovereign bonds trading about 1.2 percentage points.

Aramco set to raise $12b via bond deal
Bloomberg

Saudi Arabia has set in motion a $12 billion bond sale for its state-run oil company after an unprecedented rush of orders from investors.
“It’s going to be an important component of a lot of the different indices. So if you’re index sensitive, you can’t avoid it,” Dan Fuss, vice chairman of Loomis Sayles & Co, said in an interview.