Saudi Arabian energy giant Aramco announced today the completion of a bond issuance of $6 billion, reported the Saudi Press Agency (SPA).
The issuance contains three tranches of USD-denominated senior unsecured notes under the umbrella of Aramco’s Global Medium Term Note Program (“GMTN”).
All three tranches were positively priced with a negative new issue premium, reflecting Aramco’s strong credit profile.
These tranches include the following categories:
- $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 bonds were priced on 10 July 2024 and were offered on the London Stock Exchange.
Aramco stated that the issuance was more than six times oversubscribed based on the initial target size of US$5 billion.
Furthermore, the offering witnessed wide demand from a variety of international institutional investors.
Aramco Executive Vice President of Finance & CFO, Ziad T. Al-Murshed great optimism over the strong engagement from global investors highlighting that Aramco’s 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,” Al-Murshed added.
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