Saudi Aramco has raised $5 billion through a three-part dollar bond sale, with proceeds allocated for general corporate purposes, the company said in a filing.
The oil company priced the five-year tranche at $1.5 billion with a spread of 80 basis points over US Treasuries, tighter than the 115 basis points indicated earlier. The 10-year notes were priced at $1.25 billion with a spread of 95 basis points, and the 30-year bonds were set at $2.25 billion with a 155 basis point spread. All three tranches were priced tighter than the initial guidance, according to IFR.
This is Aramco’s first return to international debt markets since July 2023, when it raised $6 billion in a similar three-part offering.
The debt issuance follows a reported 4.6% decline in Aramco’s first-quarter net profit due to reduced sales and rising costs. The company is also reportedly considering asset sales to support its expansion plans and manage pressure from falling oil prices.
The issuance comes as other regional entities also tap global bond markets. Abu Dhabi’s Masdar raised $1 billion last week through a green bond, and Saudi Arabia’s Public Investment Fund, with $925 billion in assets, has been active in recent months.
Saudi Aramco plays a key role in funding Saudi Arabia’s Vision 2030 economic transformation strategy, which aims to reduce the country’s reliance on oil and develop new sectors.
The bond sale adds to a trend of Gulf issuers navigating volatile market conditions amid ongoing global economic and trade uncertainty.
