Such demand has never been seen in the history of emerging market bond markets. The oil giant Saudi Aramco is launching a bond on the market that is preparing to break all records: within an hour of the closing of subscriptions, the requests have already exceeded the wall of 85 billion dollars, equal to eight and a half times the funding target, which did not exceed 10 billion. Banking sources report it.
This is the highest demand ever for bonds issued in emerging markets. The previous record belonged in fact to the first bonds issued in 2016 by Saudi Arabia, which had received orders for 67 billion dollars. Even more detached are the bonds issued last year by Qatar, which collected 12 billion against requests for 52 billion.
The market therefore decides to place its trust in Saudi Aramco (state-owned giant), ignoring the concerns of some analysts about the influence exerted by the Riyadh government on the management of the group.
The sparkling result of the bond placement is a positive sign for Saudi Aramco also in view of thepossible IPO, planned in the past but then shelved.
Just to be authorized to issue bonds, in recent days Saudi Aramco had been forced to shed light on your balance sheet for the first time. The accounts, presented to the rating agencies, revealed dizzying numbers, among which the net profit of 111,1 billion dollars recorded in 2018 stands out.
