Saudi Aramco is set to raise $12 billion with its first international bond issue after receiving more than $100 billion in orders, a record breaking vote of market confidence for the oil giant, reported Reuters.
Demand for the issue comprising several bond maturities totalled $92 billion, a source close to the operation told AFP, making it nearly 6.7 times oversubscribed.
Before the bond deal was marketed on Monday, Saudi Energy Minister Khalid al-Falih said initial indications of interest for the paper were over $30 billion.
Having swelled to over $100 billion during the sale process, demand appeared to be the largest ever for emerging markets bonds, fund managers said.
“Purely on figures, it is a fantastic credit,” said Damien Buchet, CIO of the EM Total Return Strategy, Finisterre Capital.
The issue has attracted interest from a wide range of investors, as the oil producer’s vast profits would put its debt rating - if unconstrained by its sovereign links - in the same league as independent oil majors like Exxon Mobil and Shell.
The firm announced last month it was buying a 70-percent stake in SABIC from Saudi Arabia's main sovereign wealth fund, the Public Investment Fund (PIF), for $69.1 billion.
Aramco made $111 billion in net profit last year, making it the most profitable company in the world.
