Energy giant Saudi Aramco has started issuing US dollar-denominated international bonds under its Global Medium Term Note Program.
Saudi Arabia’s Aramco made its return to the debt market on Tuesday after a three-year hiatus, joining top companies and governments in the Gulf that have tapped markets this year to fund investments. The company is likely to raise at least $3 billion across the three tranches, Reuters reported.
In a statement on Tadawul, Aramco disclosed that the bonds have a minimum subscription of $200,000, with the offering price and value determined based on market conditions. The US dollar-denominated bonds are direct, general, unconditional, and unsecured obligations of the company, Aramco stressed in its statement.
The offering began on July 9 and is set to conclude on July 17.
The past year has witnessed GCC companies’s increased interest in tapping debt markets, amidst declining global interest rates. In January, the Kingdom issued $12 billion in dollar-denominated bonds as part of this trend. Aramco last tapped the global debt markets in 2021, when it raised $6 billion from a three-tranche sukuk. Last February, the company indicated plans to issue another bond this year.
The issuance is managed by Citi, Goldman Sachs International, and HSBC. JP Morgan, Morgan Stanley, and SNB Capital are also participating as active joint bookrunners.
Additional joint bookrunners include Abu Dhabi Commercial Bank, anb capital, and Bank of China, alongside BofA Securities, BSF Capital, and Emirates NBD Capital Limited. It also includes First Abu Dhabi Bank, GIB Capital, and Mizuho, along with MUFG, Natixis, Riyad Capital, SMBC Nikko, and Standard Chartered Bank.
In May, Aramco completed the sale of approximately $12 billion worth of shares in its national oil company. Earlier that year, the oil giant reported a net income of $121.3 billion for 2023, the second-highest in the company’s history.
