Aramco Completes $5 Billion Bond Issuance Across Three Tranches
- 03-Jun-2025 2:45 PM
- Journalist: William Faulkner
Aramco, a global leader in the energy and chemicals sector, announced the successful completion of a $5 billion bond issuance under its Global Medium Term Note Program.
The offering consists of three tranches of senior unsecured notes:
• $1.5 billion maturing in 2030 with a 4.750% coupon rate,
• $1.25 billion maturing in 2035 with a 5.375% coupon rate, and
• $2.25 billion maturing in 2055 with a 6.375% coupon rate.
The bonds were priced May 27 and are listed on the London Stock Exchange.
Ziad T. Al-Murshed, Aramco’s executive vice president of finance and chief financial officer, said the strong demand for the bond offering underscores the confidence global investors have in the company’s financial strength and long-term strategy.
“The strong demand for our new bond offering, as reflected in the diversified orderbook, is a testament to global investors’ confidence in Aramco’s financial resilience and robust balance sheet,” Al-Murshed said. “Pricing the offering with no new issuance premium across all tranches clearly reflects Aramco’s unique long-term credit proposition. We remain committed to our disciplined approach toward capital management as we continue to execute our growth strategy.”
This latest issuance supports Aramco’s broader financial strategy, which emphasizes long-term stability, operational efficiency and strategic growth investments. The company has consistently maintained a strong credit profile and is viewed favorably by international markets.
The bond offering attracted broad participation from a wide range of institutional investors, highlighting continued interest in Aramco’s credit fundamentals and long-term outlook. The pricing achieved — without a new issuance premium — further demonstrates market confidence and favorable positioning.
The notes are expected to be used for general corporate purposes and are part of Aramco’s ongoing efforts to diversify its funding sources while maintaining prudent financial policies. The issuance aligns with the company's ongoing capital structure optimization, supporting its long-term investment objectives across the energy value chain.
Aramco continues to play a central role in global energy markets, leveraging its integrated business model and strong operational capabilities to drive sustainable value creation.
The company has not disclosed specific allocations of the proceeds but reaffirmed its commitment to financial discipline and strategic growth, consistent with its position as a key player in the global energy transition.
With this issuance, Aramco reaffirms its status as a reliable and attractive issuer in international capital markets, supported by strong fundamentals, investor confidence and a forward-looking growth strategy.
Aramco, officially the Saudi Arabian Oil Company (SAOC), is a state-owned enterprise of Saudi Arabia and one of the largest integrated energy and chemical companies in the world. It holds a major share of the global petroleum reserves and is a leading producer of crude oil. Aramco’s product portfolio includes crude oil, refined petroleum products, natural gas, and petrochemicals.