Saudi Aramco raised $4 billion through a multi-tranche bond sale, with an order backlog of more than $21 billion at launch due to investor demand.
In a three-year tap, the national oil company raised $500 million from IPT in the +100bps region at the tightest inter-tranche spread of +60bps versus US Treasuries.
The shortest term had a 4% coupon, a yield of 4.258%, and a re-offer price of 99.281.
The tranche order value exceeded $5.7 billion at inception, excluding JLM interest.
The 5-year $1.5 billion tranche had a spread of T+80 bps from IPT in the +115 bps region, with the highest order book exceeding $6.9 billion.
This tranche has a coupon of 4.375%, a yield of 4.625% and a reoffer price of 98.895.
10 Year Tap raised $1.25 billion from IPT in the T+125bps area at a price of +95bps. This tranche had a 5% coupon, a yield of 5.167%, and a reoffer price of 98.709.
At the time of launch, order value had increased to $4.9 billion.
The size of the 30-year tranche was $750 million and the price was +130 bps from IPT in the T+165 bps area. The bond had a coupon rate of 6%, a yield of 6.106%, and a reoffer price of 98.55.
The order value in 2030 reached a maximum of $4.6 billion.
Morgan Stanley operated as the billing and delivery bank for the three-year tranche, with HSBC overseeing the five-year tranche, JPMorgan the 10-year tranche, and Citi the 30-year tranche.
The issuer’s expected rating is “Aa3” by Moody’s and “A+” by Fitch, which is the same as the issuer.
Citi, Goldman Sachs International, HSBC, JPMorgan and Morgan Stanley are active bookrunners for the bond sale, while Abu Dhabi Commercial Bank, Bank of China, BofA Securities, BSF Capital, Emirates NBD Capital, First Abu Dhabi Bank, Mizuho Bank, MUFG, NATIXIS, Riyadh Capital, SMBC and Standard Chartered Bank have been appointed as passive bookrunners.
The bonds will be listed on the main market of the London Stock Exchange.
Saudi Aramco is the latest company to tap into the kingdom’s government-backed debt market this year. Saudi Arabia conducted a multi-tranche bond sale in the first week of January, raising $11.5 billion and leading debt expansion in 2026.
Saudi Arabia’s sovereign wealth fund, the Public Investment Fund, followed suit, last week launching a $2 billion 10-year benchmark sukuk priced at T+85bps with a coupon of 5.133%.
(Writing: Bindu Rai; Editing: Sevan Scalia)
bindingu.rai@lseg.com
