The Gulf Time Newspaper One of the finest business newspapers in the UAE brought to you by our professional writers and editors.
Bloomberg
Saudi Aramco started the sale of its debut dollar bonds, drumming up an orderbook of about $40 billion, according to people familiar with the matter.
The oil giant is offering six-tranche debt, according to people familiar with the matter. The world’s most profitable company is tapping the market ahead of a planned $69 billion acquisition.
Demand for the most highly anticipated sale of the year already totalled $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 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.
Aramco got fifth-highest investment-grade ratings at both Moody’s Investors Service and Fitch Ratings, matching Saudi Arabia’s sovereign grade.