Aramco bids top $15bn, though funds puzzled as money not for Sabic

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By Francesca Young, Lewis McLellan
04 Apr 2019

Indications of interest for Saudi Aramco’s planned bond issue were understood to have topped $15bn on Thursday morning in London, with three days left of the roadshow still to run. Contrary to press reports, investors have been told on the roadshow that the cash raised will not be used directly to fund the acquisition of Saudi Basic Industries Corp, as that is not expected to take place for another six to 12 months, writes Francesca Young.

“They’re issuing because they want to have a presence in the capital markets and build a yield curve,” said an investor in London. “Some people think they’re crazy. It will go into the same treasury pile of money as any other cash, used for money market funds and ...

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