Aramco, one of the world’s leading integrated energy and chemicals companies, has completed a bond issuance of $6 billion.
The issuance is comprised 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 5.25 percent
$2 billion senior notes maturing in 2054 with a coupon rate of 5.75 percent
$2 billion senior notes maturing in 2064 with a coupon rate of 5.875 percent
Aramco said the transaction was priced on July 10, 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 as the transaction received strong demand 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 T. Al-Murshed, Aramco CFO, said: “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.”