Sunday , October 17 2021

Investors have asked for Saudi Aramco bonds for $ 2.3 trillion – Novinky.cz



This is the biggest demand for emerging market bonds so far, and shows that markets have confidence in the company, although some investors fear the influence of the Saudi government in society.

According to previous information, the company plans to issue $ 10 billion in bonds. The company has already surpassed the demand for Qatar bonds, which last year offered bonds worth $ 12 billion, while orders totaled $ 52 billion. Saudi Arabia receives $ 67 billion in 2016 by selling its first foreign bonds.

Saudi Aramco Refinery

Saudi Aramco Refinery

PHOTO: Ahmed Jadallah, Reuters

The company has not yet published details on securities. According to sources, six bond tranches with maturities of three to 30 years are planned. Saudi Aramco's demand for bonds is seen as an indicator of potential interest in the company's shares in the primary offering.

Saudi Aramco's bond issue is one of the most anticipated this year. It is the first time that a government company is entering the dollar bond markets. So far, it has only sold Islamic bonds in local currency.

The most profitable company in the world

Last week, the company released some of its financial secrets, which confirmed that it is by far the most profitable company in the world when it came when it persuaded investors to buy securities. Its main activity profits, without extraordinary items, the so-called principal profit, were $ 224 billion, and the company had $ 86 billion in free cash at the end of the year. That means he does not need to borrow money. Aramco accounts for about 10% of world oil production.

International rating agencies Fitch Ratings and Moody's Investors Service have given Aramco the fifth highest reliability rating, which is still in the investment range. The rating is the same as Saudi government bonds, but is lower than that of Exxon, Shell and Chevron, Bloomberg said.

Saudi Aramco's employee in the oil tank

Saudi Aramco's employee in the oil tank

PHOTO: Ahmed Jadallah, Reuters

Saudi Aramco has been talking about the supply of state oil stocks for several years and is anxiously awaited – it may become the largest in history. It is also an important part of the reform of Crown Prince Muhammad bin Salman, who aims to restructure the Saudi economy and reduce reliance on oil revenues.


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