Wednesday 10 April 2019

The $100 Billion Man: Aramco CEO Delivers Record-Breaking Bond - Bloomberg

The $100 Billion Man: Aramco CEO Delivers Record-Breaking Bond - Bloomberg:

When Amin Nasser met investors at the palatial St. Regis hotel in midtown Manhattan last week, the chief executive officer of the world’s biggest oil company had one clear message: we’re in a league of our own.

After a bruising two years of being buffeted by delays to an initial public offering, investor skepticism over the valuation and profound change within Saudi Arabia, the CEO was here to set Wall Street straight: “Saudi Aramco is no ordinary oil company,” the 60-year-old petroleum engineer told his audience, according to a person who was present.

A week later, it’s clear the bankers believed him. Aramco sold $12 billion of bonds yesterday in what was one of the most oversubscribed offerings in history. In an incredibly rare turn, demand was so high that the company was able to borrow at a lower yield than its sovereign parent. More importantly, the sale demonstrated Saudi Arabia’s return to the global capitalist fold after being ostracized over the assassination of Jamal Khashoggi last year.

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