Saudi Aramco, the world’s largest oil company, has brought to market a multi-tranche US dollar-denominated benchmark bond sale and announced price guidance for three-year, five-year, 10-year and 30-year bonds.
The national oil company’s three-year tap IPT is in +100 bps territory on US Treasuries, with Morgan Stanley operating as the billing and distributing bank.
HSBC will oversee the 5-year issuance with an IPT of +115bps, while JP Morgan will manage the 10-year tap with an IPT of T+125bps.
A 30-year tap with IPT in the T+165bps area is provided by Citi.
The issuer’s expected rating is “Aa3” by Moody’s and “A+” by Fitch, which is the same as the issuer.
This issue includes a fixed rate coupon payable semi-annually.
Citi, Goldman Sachs International, HSBC, JPMorgan and Morgan Stanley are active bookrunners for the bond sale, while Abu Dhabi Commercial Bank, Bank of China, BofA Securities, BSF Capital, Emirates NBD Capital, First Abu Dhabi Bank, Mizuho Bank, MUFG, NATIXIS, Riyadh Capital, SMBC and Standard Chartered Bank have been appointed as passive bookrunners.
The bonds will be listed on the main market of the London Stock Exchange.
Global books open on Monday with ICMA/FCA stabilization in place.
Saudi Aramco last entered the international debt market in September, when it raised $3 billion through the sale of Islamic bonds. Aramco priced its $1.5 billion five-year sukuk at a profit margin of 4.125% and priced its $1.5 billion 10-year sukuk at a profit margin of 4.625%.
(Writing: Bindu Rai; Editing: Sevan Scalia)
bindingu.rai@lseg.com
