Aramco announces completion of $6 billion bond issuance

Aramco, one of the world’s leading integrated energy and chemicals companies, today announced the successful completion of a US $6 billion bond issuance. This issuance comprises 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 transaction was priced on 10 July 2024, and the notes are listed on the London Stock Exchange.

The offering was more than six times oversubscribed, based on the initial targeted size of $5 billion. The transaction received strong demand from a diverse base of investment-grade focused institutional investors. All three tranches were favourably priced with a negative new issue premium, reflecting Aramco’s strong credit profile.

Ziad T. Al-Murshed, Executive Vice President of Finance & CFO at Aramco, said in a press statement, “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."

"Achieving a negative issue premium across all tranches is a testament to our unique credit proposition. 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,” he added.