SAUDI Arabia’s state oil giant drew record demand for its debut bond issue. A month on, the debt has hit a rough patch.
Yields on the debt of Saudi Arabian Oil Company, or Aramco, have drifted up in recent weeks, with its 10-year bond yield rising to 3.77% from 3.55% at issue in early April. A similar pattern is seen across the company’s bonds with different maturities.
The increase in yields is in contrast to its peers. Bonds maturing in 2025 issued by Exxon Mobil , among the multinational oil majors Aramco sought to compare itself to when it was selling the bonds last month, have dipped to 2.54% from 2.86% in the same period. A 2026 dollar bond issued by Petronas, the state-owned Malaysian oil company, has drifted down to 3.35% from 3.47%.
Aramco tapped international bond markets for $12 billion last month after receiving some $100 billion in orders.