Aramco impresses investors with $8bn multi-tranche bond

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By Mariam Meskin
18 Nov 2020

The world's largest oil company, Saudi Aramco, on Tuesday raised an $8bn multi-tranche bond, featuring a rare 50 year piece, in only its second entry into debt capital markets. Proceeds from the deal will help it to generate enough cash to fund a dividend of $75bn as oil prices remain under pressure.

The Reg S/144A senior unsecured multi-tranche bond consists of five tranches of three, five, 10, 30 and 50 years, the latter being a rarity in emerging markets.

The $500m 1.25% November 2023 tranche was priced at a yield of 1.324%, or 110bp over US Treasuries. The $1bn 1.625% ...

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