PHOTO
Saudi Aramco, the world’s biggest oil company, is coming to market with a multi-tranche USD benchmark debt sale, issuing price guidance on a three-, five-, 10-, and 30-year bonds.
The state-backed oil firm’s three-year tap has IPTs in the +100 bps area over US Treasuries, with Morgan Stanley operating as the billing and delivery bank.
HSBC will oversee the five-year issuance, with IPTs in the +115bps area, while JP Morgan will manage the 10-year tap that has IPTs in the T+125bps.
The 30-year tap, with IPTs in the T+165bps area, will be served by Citi.
The expected rating of the issuance is Aa3 by Moody’s and A+ by Fitch, in line with the issuer.
The issuance will carry fixed rate coupon, paid semi-annually.
Citi, Goldman Sachs International, HSBC, JP Morgan and Morgan Stanley are active bookrunners on the debt sale, with Abu Dhabi Commercial Bank, Bank of China, BofA Securities, BSF Capital, Emirates NBD Capital, First Abu Dhabi Bank, Mizuho, MUFG, NATIXIS, Riyad Capital, SMBC and Standard Chartered Bank named passive bookrunners.
The bonds will be listed on the London Stock Exchange’s Main Market.
Global books open on Monday, with ICMA/FCA stabilisation applies.
Saudi Aramco last tapped international debt markets in September, raising $3 billion from a sale of Islamic bonds. Aramco priced its $1.5 billion five-year sukuk at a profit rate of 4.125% and a $1.5 billion 10-year sukuk at a profit rate of 4.625%.
(Writing by Bindu Rai, editing by Seban Scaria)
