Aramco raised USD 3 bn from its latest foray into the debt markets, Reuters reports, citing a term sheet. The oil giant sold USD 1.5 bn in five-year sukuk at a 4.125% yield and another USD 1.5 bn in 10-year notes at a 4.625% yield.

Strong demand tightened spreads: The offering drew more than USD 20 bn in peak orders before closing at USD 16.85 bn, allowing Aramco to tighten pricing by 35 basis points from initial guidance.

This is Aramco’s second USD-denominated issuance this year, after raising USD 5 bn inMay to fund projects and cover its beefy dividends. The issuance came just a day after Israeli strikes on Qatar last week, with investors brushing off concerns of escalation.

Part of a bigger wave: It’s the third big transaction in September, after the government and the Public Investment Fund raised USD 7.5 bn combined. The Kingdom borrowed nearly USD 20 bn so far this year, getting close to a record set in 2017, making it one of the busiest emerging market borrowers around.

ADVISORS- Our friends at HSBC, alongside Al Rajhi Capital, Citi, Dubai Islamic Bank, First Abu Dhabi Bank, Goldman Sachs International, JP Morgan, KFH Capital, and Standard Chartered Bank served as active joint bookrunners. Meanwhile, Abu Dhabi Commercial Bank, Albilad Capital, Alinma Capital, Bank of China, Emirates NBD Capital, Mizuho, MUFG, Sharjah Islamic Bank, and SMBC were passive joint bookrunners.

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