Aramco Bond Sale So Popular That Yield Premium May Be Near Zero
- Bond likely to be ‘very well subscribed,’ Emirates NBD says
- It will need to offer ‘new issue premium’: Union Investment
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The demand for Saudi Aramco’s debut issue of debt is so strong that the world’s largest oil producer may need to offer only a small premium to the kingdom’s bonds. Even that spread may vanish, some investors say.
“Aramco’s bond is likely to be very well subscribed given its strong credit profile,” said Anita Yadav, head of fixed-income research at Emirates NBD in Dubai. “Depending on the tenure, the pricing on Aramco could be zero to up to 20 basis points wider than the relevant Saudi government curve.”