By Innovation-sa on April 15, 2019 in News
Saudi Aramco’s debut bond sale orders have reached $100 billion, far exceeding previous highs for a bond issue by an emerging market entity, indicating that global investors are confident than ever to invest in the Kingdom. The world’s largest oil company is planning to raise $12 billion from the $100 billion demand at its first international bond sale.
The demand for the state owned firm’s bond issue which is split into maturities ranging from three to thirty years reportedly sets a record for emerging market bond demand, surpassing Qatar’s $52 billion orders for $12 billion deal last year, Saudi Arabia’s $67 billion for its own bond sale in 2016 and Argentina’s $69 billion orders for $16.5 billion trade that same year.
The current demand for the bond of more than $100 billion is equal to the amount Aramco expects to raise through international equity markets in an initial public offering on stock exchanges later in 2021.
Last week, documents from Saudi Aramco’s bond offering revealed that with an annual revenue of $355.9 billion, the company emerged as the world’s most profitable business, with its 2018 profits of $111.1 billion overtaking Apple at $59.5 billion.
Arab News – April 11 2019