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 Programme and priced on January 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 $3bn via an international sukuk in September, after completing a $6bn bond deal and a $3bn 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 optimise 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 four per cent coupon and a $1.5bn tranche due in 2031 at 4.37pc.
They also comprise a $1.25bn tranche due in 2036 at 5pc, alongside a $750 million 30-year tranche maturing in 2056 with a 6pc 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 programmes, 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 optimisation with its broader ambition of sustainable value creation for its shareholders.
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