RIYADH: Saudi Aramco raised $4 billion through a multi-tranche bond sale, extending its run of international debt offerings as the world’s largest oil exporter taps strong investor appetite for Gulf investment-grade debt.
The notes were issued under the company’s Global Medium Term Note Program and priced on Jan. 26, Aramco said in a statement. The bonds are listed on the London Stock Exchange and span maturities from 2029 to 2056.
This comes as Aramco remains an active borrower in global markets, having raised $5 billion through a bond sale in June and a further $3 billion via an international sukuk in September, after completing a $6 billion bond deal and a $3 billion sukuk offering in 2024.
The latest transaction underscores the company’s ability to secure long-dated financing at competitive rates as it balances expansion spending with shareholder returns.
Ziad Al-Murshed, Aramco’s executive vice president and chief financial officer, said: “This issuance is part of Aramco’s focused strategy to further optimize its capital structure and enhance shareholder value creation.”
He added: “The attractive pricing achieved on the transaction reflects global investors’ continued confidence in Aramco’s financial strength and resilient balance sheet. We remain firmly committed to maintaining disciplined capital management and delivering long-term value to our shareholders.”
The notes include a $500 million tranche due in 2029 with a 4 percent coupon and a $1.5 billion tranche due in 2031 at 4.37 percent.
They also comprise a $1.25 billion tranche due in 2036 at 5 percent, alongside a $750 million 30-year tranche maturing in 2056 with a 6 percent coupon.
A key indicator of the transaction’s success and Aramco’s robust credit standing was the achievement of negative new issue premiums on three of the four tranches, the statement said.
The proceeds are expected to support the company’s ongoing capital expenditure programs, which include investments in both upstream oil and gas capacity and downstream chemical projects, as well as its strategic initiatives in new energy sectors.
The transaction highlights Aramco’s ability to leverage its superior credit profile to secure cost-effective financing, aligning its capital structure optimization with its broader ambition of sustainable value creation for its shareholders.
