July 21, 2024

Saudi Aramco Returns to Debt Market with $6 Billion Bond Issue 💰

Energy giant Saudi Aramco has successfully issued a $6 billion US dollar-denominated international bond, marking its return to the debt market after a three-year break. The bond offerings, initiated on July 9 under the company’s Global Medium Term Note program, will be traded on the London Stock Exchange.

This is Aramco’s first bond issuance since 2021, when it raised $6 billion through a three-tranche sukuk. The Middle East region has seen increased activity in debt markets this year, with Saudi Arabia issuing $12 billion in bonds in January.

Aramco’s CFO, Ziad T. Al-Murshed, expressed satisfaction with the strong global investor interest, noting that their order book peaked at over $33 billion. He emphasized Aramco’s financial resilience and commitment to maintaining a strong investment-grade credit rating. The bonds have a minimum subscription of $200,000 and offer yields of 5.25%, 5.75%, and 5.87% for 10, 30, and 40-year maturities, respectively.

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