Here's why you should care about Saudi Aramco's oversubscribed bond offering

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Here's why you should care about Saudi Aramco's oversubscribed bond offering
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Saudi Aramco has reportedly received bids for more than eight times the $10 billion it was expected to raise in an international bond issue.

Saudi Aramco has reportedly received bids for more than eight times the $10 billion it was expected to raise in a debut international bond issue, with the world's largest oil producer due to set the price of its bonds later on Tuesday.

Initially, the six-part deal had been expected to be at least $10 billion in size, but sources told Reuters Tuesday that orders have topped $85 billion. Before opening the books on Monday, Aramco's debut international bond sale had already attracted over $30 billion in demand, Saudi Energy Minister Khalid al-Falih said Monday, while speaking at the inaugural Gulf Intelligence Saudi Arabia Energy Forum in Riyadh.

Saudi Arabia has"A1" and"A+" ratings from agencies Moody's and Fitch, respectively, a sign of reliability and low risk for investors.

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