Saudi Aramco announced on Thursday the successful completion of a $6 billion bond issuance. The 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 5.250% coupon rate
- $2 billion senior notes maturing in 2054 with a 5.750% coupon rate
- $2 billion senior notes maturing in 2064 with a 5.875% coupon rate
The transaction, priced on July 10, saw the notes listed on the London Stock Exchange. The offering was more than six times oversubscribed, surpassing the initial target of $5 billion. The issuance attracted strong demand from a diverse base of investment-grade focused institutional investors, with all three tranches favorably priced with a negative new issue premium, reflecting Aramco’s robust credit profile.
“We are pleased with the strong interest and level of engagement from investors globally, both existing and new,” said Executive Vice President of Finance & CFO Ziad Al-Murshed. “Our order book exceeded $33 billion at its peak, reflecting Aramco’s exceptional financial resilience and fortress balance sheet. Achieving a negative issue premium across all tranches is a testament to our unique credit proposition.”
Al-Murshed 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.”
