The bond sale by energy giant Saudi Aramco has attracted record demand of $85 billion from investors, one hour before bidding closed, a banking source told AFP.<\/p>\n
Saudi Arabia’s Energy Minister Khalid al-Falih said on Monday that the bond issue to raise $10 billion towards Aramco’s purchase of a controlling stake in chemicals behemoth SABIC was already over-subscribed by three times. <\/p>\n
Falih is also chairman of state-owned Aramco, the world’s largest energy company.<\/p>\n
The firm announced last month it was buying a 70-percent stake in SABIC from Saudi Arabia’s main sovereign wealth fund, the Public Investment Fund (PIF), for $69.1 billion.<\/p>\n
Aramco made $111 billion in net profit last year, making it the most profitable company in the world. It said it will pay for most of the SABIC purchase in cash.<\/p>\n
Observers see the acquisition as way to boost the coffers of the PIF, which is leading efforts to transform the petro-state to a tech-focused economy.<\/p>\n
Ahead of the bond issue, Aramco revealed its accounts to international ratings agencies for the first time ever.<\/p>\n
The firm aims to “establish a permanent presence in the world capital markets,” Falih said in a clear reference that it will continue to seek debt.<\/p>\n
Aramco has not scrapped plans to sell up to five percent of its shares, raising tens of billions of dollars.<\/p>\n
Fitch ratings agency said last week that based on information received from Aramco, its planned initial public offering (IPO) still stands and is likely to take place in 2021.<\/p>\n","protected":false},"excerpt":{"rendered":"
The bond sale by energy giant Saudi Aramco has attracted record demand of $85 billion from investors, one hour before bidding closed, a banking source told AFP. Saudi Arabia’s Energy Minister Khalid al-Falih said on Monday that the bond issue to raise $10 billion towards Aramco’s purchase of a controlling stake in chemicals behemoth SABIC was already over-subscribed by three times. Falih is also chairman of state-owned Aramco, the world’s largest energy company. The firm announced last month it was buying a 70-percent stake in SABIC from Saudi Arabia’s main sovereign wealth fund, the Public Investment Fund (PIF), for $69.1 […]<\/p>\n","protected":false},"author":39,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[133],"tags":[],"class_list":["post-268705","post","type-post","status-publish","format-standard","hentry","category-oil-gas"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/268705","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/39"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=268705"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/268705\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=268705"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=268705"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=268705"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}