Aramco Oil Pipelines investors expected to raise roughly half targeted amount with bonds | Reuters

Aramco Oil Pipelines investors expected to raise roughly half targeted amount with bonds | Reuters

A group of institutional investors that last year took a stake in Saudi Aramco's oil pipelines network is expected to raise between $2 billion and $2.5 billion via a sale of dual-tranche amortising bonds for which final spreads was unchanged from initial guidance, a bank document showed on Thursday.

A separate bank document earlier showed that the investors, through EIG Pearl Holdings, were seeking to raise between $3.5 billion and $4.4 billion. The bonds received more than $4.9 billion in orders, the latest bank document showed roughly 15 minutes before books were due to close at 1715 GMT.

Final spreads were set at 185 basis points (bps) over U.S. Treasuries (UST) for a tranche maturing in 14-1/2 to 15 years, and 235 bps over UST for paper maturing in 24-1/2 to 25 years, both unchanged from initial price guidance, documents from one of the banks on the deal showed.

The tranches will have a weighted average life of 10.2 to 10.7 years and between 23-1/2 and 24 years, respectively.