Prime Highlights
- Saudi Aramco successfully raised $4 billion through a multi-tranche international bond sale, reflecting strong global investor demand.
- The bond issuance reinforces Aramco’s ability to secure long-term funding at attractive rates while supporting growth and shareholder returns.
Key Facts
- The bonds were issued under Aramco’s Global Medium Term Note Programme and are listed on the London Stock Exchange, with maturities ranging from 2029 to 2056.
- Proceeds from the sale will be used to fund investments in oil and gas operations, chemical projects, and new energy initiatives.
Background:
Saudi Aramco has raised $4 billion through a multi-tranche international bond sale, underscoring sustained investor appetite for high-quality Gulf debt and reinforcing the oil giant’s strong position in global capital markets.
The bonds were issued under Aramco’s Global Medium Term Note Programme and priced on January 26, according to a company statement. They are listed on the London Stock Exchange and carry maturities ranging from 2029 to 2056, reflecting investors’ willingness to commit to long-dated exposure to the world’s largest oil exporter.
The latest fundraising adds to Aramco’s active borrowing strategy in recent years. The company raised $5 billion from a bond sale in June and a further $3 billion through an international sukuk in September. These followed a $6 billion bond and a $3 billion sukuk in 2024, showing Aramco’s strong access to global debt markets.
Saudi Aramco’s chief financial officer, Ziad Al-Murshed, said the latest bond sale supports the company’s efforts to improve its capital structure while delivering long-term value to shareholders. He added that the strong pricing reflects investor confidence in Aramco’s financial strength and stable balance sheet.
The offering was divided across four tranches. The bond sale was split into four parts, including a $500 million bond due in 2029 with a 4% interest rate, a $1.5 billion bond maturing in 2031 at 4.37%, a $1.25 billion bond due in 2036 with a 5% rate, and a $750 million bond maturing in 2056 with a 6% rate.
The funds will support oil, gas, chemicals, and new energy projects, showing Aramco’s access to long-term funding at good rates.
