Aramco oil pipelines investors expected to raise $3.5-4.4 billion via bonds

DUBAI: A group of institutional investors that last year took a stake in Saudi Aramco’s oil pipelines network is expected to raise between $3.5 billion and $4.4 billion via a sale of dual-tranche amortising bonds on Thursday, a bank document showed.

Initial price guidance was around 185 basis points (bps) over U.S. Treasuries (UST) for a tranche due in between 14-1/2 and 15 years and around 235 bps over UST for paper maturing in 24-1/2 to 25 years, the document 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.

Citi and JPMorgan are coordinating the deal, which 18 other banks are also involved and is expected to launch later on Thursday.