PHOTO
Saudi Aramco has raised $4 billion through its multi-tranche bond sale, with investor demand driving order books in excess of $21 billion at launch.
The three-year tap saw the state-backed oil firm raise $500 million, with the tightest spread across tranches, at +60bps over US Treasuries from IPTs in the +100bps area. The orderbook for the tranche was in excess of $5.7 billion, excluding JLM interest.
The five-year $1.5 billion tranche saw the spread at T+80bps from IPTs in the +115bps area, with the highest orderbook, exceeding $6.9 billion.
The 10-year tap raised $1.25 billion at a +95bps price, from IPTs in the T+125bps area. The orderbook grew to $4.9 billion at time of launch.
The 30-year tranche was sized $750 million, priced at +130bps from IPTs in the T+165bps area, The order book peaked to $4.6 billion.
Morgan Stanley operated as the billing and delivery bank on the three-year tranche, with HSBC overseeing the five-year, JP Morgan on the 10-year and Citi on the 30-year tap.
The expected rating of the issuance is Aa3 by Moody’s and A+ by Fitch, in line with the issuer.
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.
Saudi Aramco is the latest state-backed entity in the kingdom to tap debt markets this year. The kingdom led the 2026 debt tap through a multi-tranche sovereign bond sale in the first week of January that raised $11.5 billion.
Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, followed suit with a $2 billion 10-year benchmark sukuk last week, priced at T+85bps, with a 5.133% coupon.
(Writing by Bindu Rai, editing by Seban Scaria)
