• High Demand: The bond issuance was oversubscribed six times, with an order book peaking at $33 billion.
• Strong Pricing: All tranches were favorably priced with a negative new issue premium, indicating Aramco’s robust credit profile.
• Investor Confidence: Received strong demand from investment-grade focused institutional investors.

Aramco, a leading integrated energy and chemicals company, has completed a $6 billion bond issuance. This issuance includes three tranches of USD-denominated senior unsecured notes under the Global Medium Term Note Program (GMTN).

Tranche Breakdown:

• 2034 Maturity: $2 billion at a 5.250% coupon rate.
• 2054 Maturity: $2 billion at a 5.750% coupon rate.
• 2064 Maturity: $2 billion at a 5.875% coupon rate.

The transaction was priced on July 10, 2024, and the notes are listed on the London Stock Exchange.

Investor Response

The offering exceeded initial expectations, being more than six times oversubscribed. This strong demand came from a diverse group of investment-grade focused institutional investors. All three tranches achieved a negative new issue premium, showcasing Aramco’s strong credit standing.

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Executive Insight

“We are pleased with the strong interest and level of engagement from investors globally, both existing and new,” said Ziad T. Al-Murshed, Aramco Executive Vice President of Finance & CFO. “Our 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.“

Aramco’s successful bond issuance highlights its financial strength and investor confidence, further solidifying its position in the global energy market.