Saudi Aramco prepares for USD6N bond offering amid robust investor demand

(MENAFN) Saudi Aramco, the Saudi Arabian oil giant, is preparing for its first bond offering in three years with the goal of raising USD6 billion. According to details outlined in a document from one of the banks involved in the sale, Aramco intends to issue three tranches of bonds: USD2 billion in 10-year bonds at a yield of 105 basis points above U.S. Treasuries, USD2 billion in 30-year bonds at 145 basis points over U.S. Treasuries, and USD2 billion in 40-year bonds with a yield of 155 basis points above U.S. Treasuries.

The bond issuance has garnered significant investor interest, with demand for the three tranches surpassing USD31.5 billion. This strong demand reflects investor confidence in Aramco's creditworthiness despite global economic uncertainties and fluctuating oil prices. The offering is being managed by a consortium of prestigious banks, including HSBC, NCB Capital, Goldman Sachs International, JPMorgan, Citi, and Morgan Stanley, acting as joint active bookrunners. Additionally, passive joint bookrunners involved in the transaction include SMBC Nikko, MUFG, Riyad Capital, Saudi Fransi Capital, and several other prominent financial institutions.

Saudi Aramco's decision to return to the bond market after a hiatus underscores its strategic approach to diversify its funding sources and capitalize on favorable market conditions. The proceeds from the bond issuance are expected to support the company's ongoing operations and strategic initiatives amidst the evolving global energy landscape. 



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