Saudi Aramco plans roadshow next week; Romania prices €3 billion notes; pipeline eyed amid softer market

By Rebecca Melvin

New York, March 28 – Saudi Arabian Oil Co. (Saudi Aramco) plans to hold a roadshow next week regarding a mega offering of bonds in at least two tranches, according to a market source on Thursday.

The state-owned oil company will use proceeds to help fund its $69.1 billion acquisition of 70% of Saudi Basic Industries Corp. and is expected to be at least $10 billion in size.

The deal, which was widely anticipated, will mark Aramco’s debut in the international debt market and is expected to be warmly received by investors. JPMorgan and Morgan Stanley are global coordinators and bookrunners of the notes, with HSBC, Citigroup, Goldman Sachs and National Commercial bank also acting as bookrunners.

Romania’s new triple trancher of euro notes was in the market on Thursday after pricing well tight to initial talk.

Romania’s €1.15 billion of long seven-year notes priced at 99.078 to yield 2.132%, or a spread of mid-swaps plus 190 basis points, which shaved 25 bps from initial price talk. The €500 million of 15-year notes priced to yield mid-swaps plus 285 bps compared to plus 306 bps initially, and the €1.35 billion tranche of 30-year notes priced to yield mid-swaps plus 365 bps compared to mid-swaps plus 390 bps initially.

Additional deals in the pipeline weren’t yet heard to be pricing as the market remained “a bit softer” in the last few sessions compared to last week, a London-based market source said.

Other deals market players were watching for the Middle East and Africa, Central &Eastern Europe regions were from National Bank of Ras Al Khaimah (Rakbank), Transoil, Alrosa Co. Ltd. and a euro-ruble deal from JSC Russian Railways.

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