Saudi Aramco is set to raise $8 billion from the bond market, according to one of the banks handling the deal. The orders for Aramco’s bond reached $48.1 billion, a document from the bank showed. Aramco’s latest bond issuance consists of a five-part deal. It sold $500 million in three-year notes, $1 billion in five-year notes, $2 billion in 10-year bonds, $2.25 billion in 30-year bonds, and $2.25 billion in a 50-year tranche.
The three-year notes were sold at 110 basis points over the US Treasuries (UST). The bonds with maturities of five and ten years have 125 bps, and 145 bps spread over UST, respectively. Meanwhile, the thirty- and fifty-year tranches were at 3.3% at 3.55%, respectively.
Saudi Aramco posted a 44.6% fall in third-quarter profit. The company needs cash to pay dividends of $37.5 billion for this year’s second half and finance the acquisition of a 70% stake in Saudi Basic Industries (SABIC). Earlier this year, Aramco raised $10 billion in loans to fund the stake purchase.
