IFR: Saudi Aramco Begins Selling Bonds in 3 Tranches

The IFR Fixed Income News Service said today, Wednesday, that Saudi Aramco has begun selling bonds in three tranches: 10 years, 30 years, and 40 years.

It also added that Aramco set the initial indicative price at about 195 basis points above 40-year US Treasury bonds, at about 180 basis points above 30-year US Treasury bonds, and at about 140 basis points above 10-year US Treasury bonds, according to “Reuters.”

Aramco said in a statement on Saudi Tadawul on Tuesday that determining the value of the offering will depend on market conditions.

The company added that the target group for the issuance is institutional investors (qualified in the countries where the offering will take place, in accordance with the laws and regulations in force in those countries).

The bonds will also constitute direct, general, unconditional, unguaranteed US dollar obligations of Saudi Aramco.

Aramco appointed HSBC, NCB Capital, Goldman Sachs International, JP Morgan, Citi, and Morgan Stanley as active joint bookrunners.

The appointment also included “SMBC Nikko”, “MUFJ”, “Riyad Capital”, “Saudi Fransi Capital”, “Arabi Capital”, First Abu Dhabi Bank, Abu Dhabi Commercial Bank, and Standard Chartered Bank, Bank of China, GIB Capital, Emirates NBD Capital Limited, Merrill Lynch Saudi Arabia, Mizuho and Natixis that are acting as inactive joint bookrunners.

Additionally, the minimum subscription is US$200,000 and integral multiples of US$1,000 in excess of that amount, subject to market conditions.

Furthermore, the nominal value is $200,000, and the offering price and maturity period are determined according to market conditions.

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