Aramco Announces Multi-Tranche Bond Issue

Saudi Aramco plans a multi-tranche issue of senior, US dollar-denominated bonds, it said in a filing on the Saudi stock exchange on November 16, without disclosing the size of the offering.

Goldman Sachs, Citigroup, HSBC, JPMorgan, Morgan Stanley and NCB Capital have been hired as arrangers and dealers for the issue, due to take place between November 16 and 18. They will arrange a series of investor meetings in the coming days. The Saudi state-owned oil giant will offer bonds maturing in three, five, 10, 30 and 50 years' time, with the minimum subscription set at $200,000.

Aramco said the proceeds from the issue would be used for general corporate purposes, without divulging details. Aramco made its debut on international debt markets in April 2019, when it raised some $12bn from bond sales.

The company has seen earnings tumble this year as a result of low oil prices and Opec+ cuts, but has promised to pay some $37.5bn in dividends for the second half of the year to replenish the Saudi budget. It has also committed to paying $69.1bn for a 70% stake in Saudi petrochemicals group Sabic in instalments until 2028. That deal was closed in June.