Saudi Aramco has received orders of over $ 20 billion for its prospective dollar bond offering.
According to Arabiya Net, the dollar bond offering is expected to include five tranches spread over 3, 5 and 10 years terms, in addition to maturities of 30 and 50 years, according to Market conditions.
and Aramco has chosen Citigroup Inc, HSBC Holdings, JPMorgan Chase & Co., Morgan Stanley and Riyadh-based Al Ahly Capital to promote For bonds.
The company could raise about $ 6 billion, according to two people familiar with the deal, while Aramco media officials did not immediately respond to Bloomberg's requests for comment.
interest rates
Hassanein Malik, head of equity strategy at Emerging Markets Telemer, said: The challenge to the bond offering should not be demand, as investors search for yield. In an environment of low domestic and global interest rates, however, lower oil prices for a longer period, which means less cash generation, should definitely be reflected in bond pricing.
The yield on Aramco's bonds due in 2029 at a value of $ 3 billion decreased to 2.09% from 3.04% at the beginning of the year, which is slightly higher than the equivalent government securities. That is trading at the 2% level.
and a statement stated that Aramco, which sold shares on the Saudi Stock Exchange last year, will make contact with fixed-income investors as of Monday, and a dollar agreement with worthy segments may follow. Within 3 years, 5 years, 10, 30 and 50 years, depending on investor demand.
Aramco CEO Amin Nasser said last June that Aramco would consider using all tools available to us to fulfill its dividend pledge.
financing gap
The company already pulled out a $ 10 billion loan in July to help close the financing gap, and the free cash flow in the first nine months of the year was $ 33.5 billion. / p>
and while crude oil prices recovered from their lowest levels in March to around $ 44 a barrel, they are still down by 34% this year.
p>NamaaZone " The Power of Knowledge"
