BlackRock-led investors in Aramco pipelines start bond sale By Reuters


© Reuters. FILE PHOTO: General view of Aramco tanks and oil pipe at Saudi Aramco’s Ras Tanura oil refinery and oil terminal in Saudi Arabia May 21, 2018. REUTERS/Ahmed Jadallah

DUBAI (Reuters) – Investors in Saudi Aramco (TADAWUL:)’s gas pipelines network, led by BlackRock Inc (NYSE:), have begun a sale of dollar bonds in three tranches to refinance a multi-billion dollar loan that backed their stake purchase, a bank document showed.

Initial price guidance was around 240 basis points (bps) over U.S. Treasuries (UST) for sukuk, or Islamic bonds, with a weighted average life (WAL) of 7-1/2 years, the document showed.

Guidance was around 275 bps over UST for a tranche with a 12-year WAL and around 305 bps over UST for Formosa bonds with an 18-year WAL. The deal is expected to price late on Thursday.

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