The world’s largest oil company, Saudi Aramco , has launched a $4-billion four-tranche bond, drawing robust demand from investors for its first foray into global debt markets this year. The state-owned oil behemoth issued $500 million, $1.5 billion, $1.25 billion and $750 million in bonds with maturities of three, five, 10 and 30 years respectively, the fixed-income news service IFR said on Monday. Order books for the offering exceeded $21 billion, showing strong investor appetite, enabling Aramco to tighten the spread on the three-year bonds to 60 basis points (bps) over U.S. Treasuries from an initial guidance of 100 bps, IFR said. The five-year tranche was priced at 80 bps over Treasuries, narrowing from an indicative spread of 115 bps.Read More
