Aramco announces completion of $6 billion bond issuance

Aramco today (July 18) announced that it 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 5.250%
• $2 billion senior notes maturing in 2054 with a coupon rate of 5.750%
• $2 billion senior notes maturing in 2064 with a coupon rate of 5.875%.

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.
• 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.

We are pleased with the strong interest and level of engagement from investors globally, both existing and new.
— Ziad T. Al-Murshed, Aramco executive vice president of Finance and chief financial officer

“Our order book exceeded $33 billion at its peak, reflecting Aramco’s exceptional financial resilience and fortress balance sheet,” Al-Murshed added. “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.”