Aramco, one of the world’s leading integrated energy and chemicals companies, has announced the successful completion of a $5 billion bond issuance under its Global Medium Term Note Program, drawing strong demand from a broad and diverse pool of institutional investors.
The offering reflects a high level of global investor confidence in Aramco’s financial resilience, credit quality, and long-term business strategy.
The bond issuance, which was priced on May 27, 2025, was divided into three tranches of senior unsecured notes, with varying maturities and coupon rates, and was listed on the London Stock Exchange.
The details of the offering are as follows:
•$1.5 billion of senior notes maturing in 2030, carrying a coupon rate of 4.750%
•$1.25 billion of senior notes maturing in 2035, carrying a coupon rate of 5.375%
•$2.25 billion of senior notes maturing in 2055, carrying a coupon rate of 6.375%
Aramco stated that the bond offering received strong interest from a wide array of high-quality institutional investors, indicating a high degree of market confidence in the company’s creditworthiness and overall stability.
The strong response across all three tranches also underscores Aramco’s status as a highly regarded issuer in the global debt market.
In a statement, Executive Vice President of Finance and Chief Financial Officer at AramcoZiad T. Al-Murshed, emphasized the significance of the transaction and the strength of investor demand:
“The strong demand for our new bond offering, as reflected in the diversified orderbook, is a testament to global investors’ confidence in Aramco’s financial resilience and robust balance sheet.
Pricing the offering with no new issuance premium across all tranches clearly reflects Aramco’s unique long-term credit proposition.
We remain committed to our disciplined approach towards capital management as we continue to execute our growth strategy,” he added.
The statement highlights that Aramco was able to price the bonds without offering a new issuance premium, a noteworthy achievement that reflects the strength of its financial standing and investor trust in the company’s long-term outlook. In other words, the company did not need to provide additional yield incentives to attract buyers, signaling that the market views Aramco’s debt as a desirable and low-risk investment.
Aramco’s ability to secure favorable pricing terms across short-, medium-, and long-term maturities further demonstrates the company’s exceptional credit strength, even at a time when global financial markets face a variety of challenges and uncertainties. The success of this transaction supports Aramco’s ongoing strategy of disciplined capital management, while aligning with its broader growth objectives.
While specific uses of the proceeds were not detailed in the announcement, the issuance is expected to support Aramco’s continued efforts in managing its financial structure and advancing its long-term corporate strategy. The listing of the bonds on the London Stock Exchange adds to the transparency and global accessibility of the offering.
The bond deal marks another important milestone for Aramco as it continues to engage with the international investor community. By completing this transaction across three different maturities five years (2030), ten years (2035), and thirty years (2055), Aramco has demonstrated its ability to attract interest across a wide spectrum of investment horizons.
Shahriena Shukri is a journalist covering business and economic news in Malaysia, providing insights on market trends, corporate developments, and financial policies. More about Shahriena Shukri.
