Saudi Aramco issues $4B bonds in 4 tranches

Logo of Saudi Aramco

Saudi Aramco issued $4 billion of bonds across four tranches with maturities ranging from three to 30 years, Reuters reported.

The oil giant sold $500 million, $1.5 billion, $1.25 billion and $750 million of notes, the report stated, citing IFR’s fixed-income service. The bonds carry maturities of three, five, 10 and 30 years, respectively.

Investor demand exceeded $21 billion, enabling Aramco to tighten pricing. The three-year tranche was priced at 60 basis points over US Treasuries, compared with initial guidance of about 100 basis points.

The five-year tranche was priced at 80 basis points over Treasuries, down from initial indications of around 115 basis points.

The 10-year and 30-year tranches were priced at spreads of 95 basis points and 130 basis points, respectively. Initial pricing guidance had been about 125 basis points and 165 basis points over US Treasuries.

According to data available to Argaam, Aramco began marketing the dollar-denominated bonds on Jan. 26 under its international medium-term note program.

The notes are senior, unsecured obligations of Saudi Aramco