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Saudi Arabian Oil Company (Aramco) has issued mandates for a 5-year, 10-year, and 30-year dollar-denominated Reg S benchmark, which is expected to be priced today.
The IPTs for the 5-year bond fall in the area of 115 basis points (bps) over US Treasuries, with the 10-year in the T+130bps area, and the 30-year at T+185bps. The issuance will have a fixed rate, semi-annual, 30/360, IFR reported.
The issuance is rated Aa3 by Moody’s and A+ by Fitch, in line with Aramco’s own rating, with a stable outlook.
The settlement date is June 2, 2025, and will be listed on the London Stock Exchange (Main Market).
Citi, Goldman Sachs International, HSBC and JP Morgan have been appointed as active bookrunners, with Abu Dhabi Commercial Bank, Bank of China, BofA Securities, Emirates NBD Capital, First Abu Dhabi Bank, Mizuho, MUFG, NATIXIS, Riyad Capital, SMBC, SNB Capital and Standard Chartered Bank named as passive bookrunners.
The issuance will come under Aramco’s Global Medium Term Note Programme.
The mandate by Aramco comes a day after a Reuters report that stated the kingdom’s state oil giant was exploring potential asset sales to free up funds, citing people with knowledge of the matter, amidst lower crude prices and international expansion plans.
Earlier this month, Aramco reported a 4.6% drop in first-quarter profit to 97.54 billion riyals ($26.01 billion), due to lower sales and higher operating costs. The company also announced it would slash dividend payouts by nearly a third this year as lower oil prices hit its income.
(Writing by Bindu Rai, editing by Brinda Darasha)
