Saudi Aramco’s planned bond issuance will likely price around 10 basis points wider than the government of Saudi Arabia’s debt curve, financial sources said, the small difference suggesting that investors see its risk profile as slightly higher after oil prices dropped this year.
The oil giant said on Monday it was considering issuing multi-tranche U.S. dollar-denominated bonds in what would be its second foray into the international debt markets.
Last year, in Aramco’s jumbo debut bond issuance of $12 billion, the world’s largest oil producer priced its paper inside the sovereign’s curve, as investors put the oil producer - if unconstrained by its sovereign links - in the same league as independent oil majors such as Exxon Mobil and Shell.
The bonds widened when they started trading and their gap to Saudi government paper of the same maturity narrowed.
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