RIYADH: After a three-year break, Saudi Aramco, the world’s largest energy company, has successfully issued a $6 billion international bond denominated in US dollars. The offerings, which started on July 9 under the company’s Global Medium Term Note programme, will be traded on the London Stock Exchange, the company disclosed in a Tadawul statement.
Aramco last made use of the debt market to raise $6 billion through a three-tranche sukuk, or Islamic bond, in 2021. In light of the falling global interest rates this year, Middle Eastern governments and businesses have been keen to take advantage of debt markets. Saudi Arabia released $12 billion in bonds denominated in dollars in January as part of this trend.
“We are pleased with the strong interest and level of engagement from investors globally, both existing and new,” stated Ziad T. Al-Murshed, executive vice president and chief financial officer of Aramco. At its height, our order book was over $33 billion, demonstrating Aramco’s remarkable financial resiliency and strong balance sheet.
“We have proven our unique credit proposition by achieving a negative issue premium across all tranches,” he continued. Our goal is to sustain a solid investment-grade credit rating throughout economic cycles. We have continuously proven our financial discipline while generating shareholder value and business growth.
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