Aramco sold $500 million in three-year bonds at 110 basis points over U.S. Treasuries (UST), $1 billion in five-year bonds at 125 bps over UST, $2 billion in 10-year notes at 145 bps over UST, $2.25 billion in 30-year bonds at 3.3% and $2.25 billion in a 50-year tranche at 3.55%, the document showed.
"I think the shorter-end is offering a bit more value than the longer-dated bonds to where the existing bonds are trading," said Max Wolman, senior portfolio manager at Aberdeen Asset Management.Aramco tightened the spreads on the tranches with maturities of three, five and 10 years by 30 bps from where it began marketing them earlier on Tuesday. The spreads on the 30- and 50-year tranches were tightened by around 40 bps.
Last year, Aramco priced its debut bonds inside the Saudi government's debt curve, but this bond sale was wider.The 50-year tranche is the longest-dated international
debt issued by Saudi Arabia.
In April, it issued a 40-year bond tranche - at the time the longest-dated dollar issuance by a Gulf borrower, only to be overtaken by a 50-year tranche by Abu Dhabi in August. Citi, Goldman Sachs, HSBC, JPMorgan, Morgan Stanley, NCB Capital were hiredas active book runners.
Other banks involved in the deal include BNP Paribas , BOC International, BofA Securities, Credit Agricole, First Abu Dhabi Bank, Mizuho, MUFG, SMBC Nikkoand Societe Generale.
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