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Aramco gets whopping $100 billion demand for landmark bond

Credit: Reuters - Business (Amazon FireT
Published on April 9, 2019 - Duration: 01:06s

Aramco gets whopping $100 billion demand for landmark bond

Orders for Saudi Aramco's debut international bonds topped $100 billion on Tuesday, a record breaking vote of market confidence for the oil giant despite some investor concerns about government influence over the company.

David Pollard reports.

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Aramco gets whopping $100 billion demand for landmark bond

Saudi Aramco, the world's top oil producer, can claim another crown too after demand for its bond issue topped 100 billion dollars.

For emerging market debt, it's a record.

And almost double the 52 billion dollar order book for Qatar's 12 billion dollar deal last year.

It also surpasses the 67 billion in demand for Aramco's state owner, Saudi Arabia's inaugural issue in 2016.

Aramco is expected to raise more than 10 billion dollars from the deal, seen as a gauge of potential investor interest in an eventual IPO.

Some investors fear Riyadh's control over the oil giant could slant decisions towards the Saudi government rather than towards them.

But ahead of the debt issue, Aramco last week opened its books to investor scrutiny for the first time.

With core earnings of 224 billion dollars last year, it is by far the most profitable company in the world.

And its newly-awarded top-notch credit ratings, its first ever, should put it in the same league as oil major like Exxon Mobil and Shell.

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