Aramco plans int’l USD-denominated medium-term bond issue

Saudi Aramco said the US$-denominated bonds will be senior unsecured notes

Saudi Arabian Oil Co. (Saudi Aramco) announced plans to issue international bonds under its USD-denominated Global Medium Term Note Program.

The bonds will be senior and unsecured by Aramco’s assets, the company said in a statement to Tadawul today, Jan. 26.

The offer value is subject to market conditions. The net proceeds from each bond issuance will be used for Saudi Aramco’s general corporate purposes or any other purpose specified in the final terms for a series of bonds.

The planned issuance is pending the approval of the relevant regulatory authorities.

The stabilization rules of the Financial Conduct Authority (FCA) and the International Capital Market Association (ICMA) will apply.

An application will be made to admit the bonds to the official list of the FCA and the London Stock Exchange (LSE) and for admission to trading on the LSE’s main market.

The Saudi-listed oil major mandated Citigroup, Goldman Sachs, HSBC, JPMorgan, and Morgan Stanley as active joint bookrunners.

Abu Dhabi Commercial Bank (ADCB), Bank of China, BofA Securities, BSF Capital, Emirates NBD Capital, First Abu Dhabi Bank (FAB), Mizuho, MUFG, Natixis, Riyad Capital, SMBC, and Standard Chartered Bank were named passive joint bookrunners.

The planned offering will be limited to qualified investors in the jurisdictions where the offering takes place, in compliance with the applicable rules and regulations.