Saudi Aramco faces key test of demand in global debt markets | Financial Times:
Saudi Arabia’s state-owned energy company is preparing to issue a debut bond — a key test of investors’ willingness to do business with the kingdom five months after the murder of journalist, Jamal Khashoggi.
Plans to offer shares in Saudi Aramco, billed as the biggest initial public offering in history, were put on ice last year because of concerns over valuation and litigation risks. Now the kingdom is turning to the global debt markets to issue a $10bn bond in what could be the first in a series of deals for the world’s biggest oil producer. Teams of bankers across Wall Street have begun to drum up interest for a transaction likely to be launched in the second quarter.
The deal could be well received, despite the damage done to Saudi Arabia’s international standing by the Khashoggi affair. The oil price is rising, the bond’s coupon offers a small premium to government bonds and Saudi Aramco is an energy sector giant with daily oil production about three times that of ExxonMobil.
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