Aramco pipeline investors to raise $4.4 billion from a bond sale

A banking document revealed that a group of institutional investors that last year acquired a stake in Saudi Aramco’s oil pipeline network is expected to raise between $3.5 billion and $4.4 billion from the sale of bonds in two tranches.

The document of one of the banks participating in the offering process last Thursday showed that the initial indicative price is about 185 basis points above US Treasury bonds for a segment maturing between 14 and a half years to 15 years, and about 235 points for bonds with a term of 24 and a half to 25 years.

The average term of the two tranches will likely be 10.2 to 10.7 years, and between 23 and a half years, and 24 years, respectively, and the issuance of these bonds will refinance part of the debt facility of $ 10.8 billion, which contributed to the financing of the Aramco oil pipeline deal.

Last week, a document had said that EIG Pearl Holdings, owned by investors, owns a stake in Aramco’s oil pipelines; Citi and JPMorgan were tasked with arranging the sale of dollar-denominated bonds in two tranches.

Also participating in the deal are 18 banks from the United States, Europe, Asia, and the Middle East, including First Abu Dhabi Bank, HSBC, and Mizuho.

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