Saudi Aramco Finalizes $6 Billion In Bond Issuance With Global Investor Support

Saudi Aramco has successfully completed a $6 billion bond issuance, as revealed in a recent press release. This issuance consists of three tranches of USD-denominated senior unsecured notes under Aramco’s Global Medium Term Note Program (GMTN). The tranches include $2 billion senior notes maturing in 2034 with a coupon rate of 5.250%, $2 billion senior notes maturing in 2054 with a coupon rate of 5.750%, and $2 billion senior notes maturing in 2064 with a coupon rate of 5.875%.

The offering was more than six times oversubscribed, surpassing the initial target size of $5 billion. This high demand came from a diverse base of investment-grade focused institutional investors. All three tranches were favorably priced with a negative new issue premium, reflecting Aramco’s strong credit profile.

Ziad Al-Murshed, Executive Vice President of Finance & CFO, expressed satisfaction with the investor interest and engagement globally. He stated, "We are pleased with the strong interest and level of engagement from investors globally, both existing and new. Our order book exceeded $33 billion at its peak, reflecting Aramco’s exceptional financial resilience and fortress balance sheet."

Financial Resilience

Al-Murshed highlighted that achieving a negative issue premium across all tranches is a testament to Aramco’s unique credit proposition. He added, "We have consistently demonstrated our financial discipline while delivering on shareholder value and business growth, and we aim to maintain a strong investment-grade credit rating across business cycles."

The transaction was priced on , and the notes are listed on the London Stock Exchange. The successful bond issuance underscores Aramco's robust financial health and strategic approach to maintaining investor confidence.

This bond issuance demonstrates Saudi Aramco's commitment to maintaining financial stability while ensuring growth and delivering value to shareholders.

With inputs from SPA