Saudi Aramco is planning to borrow $12 billion in its debut bond sale as the oil giant pulls off one of the most oversubscribed debt deals of all time.
Investor orders for the dollar bonds reached an excess of $100 billion at the peak on Tuesday, according to people with knowledge of the matter. That demand will allow Aramco to pay less for its debt than the Saudi government—a rare development for a state-owned entity, and underscoring the financial strength of the world’s most profitable company. It also marks a comeback for Saudi Arabia after the kingdom was shunned by Wall Street and international investors last year following the assassination of journalist Jamal Khashoggi.
Aramco is selling the debt in five parts, with the longest maturity, a 30-year bond, to yield 155 basis points over U.S. Treasuries, the people said, asking not to be identified as the details are private.