Saudi Aramco $10bn bond offering attracts $100bn of interest

Aramco is selling the debt in five parts with the longest maturity a 30-year bond to yield 155 basis points over US Treasuries

Aramco is selling the debt in five parts with the longest maturity a 30-year bond to yield 155 basis points over US Treasuries

Saudi Aramco is set to raise $12 billion with its first global bond issue after receiving more than $100 billion in orders, a record breaking vote of market confidence for the oil giant, reported Reuters.

Saudi Arabia faced global condemnation after the assassination in October of Jamal Khashoggi by Saudi agents in the Saudi consulate in Istanbul. JPMorgan, Morgan Stanley, HSBC, Citi, Goldman Sachs and National Commercial Bank arranged the bond issue.

The money is meant to bring cash to the kingdom's coffers. That demand will allow Aramco to pay less for its debt than the Saudi government - a rare development for a state-owned entity, and underscoring the financial strength of the world's most profitable company. That money would then be used by the fund as it broadens its investments in an effort to diversify Saudi revenue away from its decades-old reliance on fossil fuels. According to an assessment published Monday, April 1, 2019, by Moody's Investors Services, the net profits of Saudi Aramco reached $111 billion past year. In October, over 100 global executives, including CEOs of leading US and European firms, canceled their involvement in a Saudi investment agent in the wake of this Khashoggi killing. In filings released before the bond issue, ratings agencies revealed that the company made $111 billion in net income a year ago.

14 killed in bomb blast in Pakistan
The police chief said at least eight Shiites were among the dead, as well as a paramilitary soldier and seven other people. According to security forces, a auto belonging to members of the Hazara community was targeted in the attack.

By comparison, Apple booked a profit of about $60 billion in its previous year, Royal Dutch Shell had Exxon Mobil $21 billion and net earnings of $23 billion.

Prince Alwaleed bin Talal's firm Kingdom Holding Co did not buy bonds of Saudi Aramco, its chief executive Talal Ibrahim al-Maiman said on Wednesday.

Kingdom Holding CEO Talal Al-Maiman explained the bond yields were somewhat lower than what the company targets for. Factually, based on the solid data received so far on Saudi Aramco's International Bond debut, the bond had already attracted more than $30 billion in demand earlier on Monday Asian trading session, the Saudi Energy Minister Khalid al-Falih said. "It's just a huge vote of confidence".

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