Aramco will seek listing of the bond on the London Stock Exchange’s main market. Image by Aramco Saudi Aramco announced Thursday that it raised $6 billion through a dollar-denominated international bond sale under its medium-term note program.
Bond issue details As many as 30,000 bonds were issued to institutional investors with a minimum subscription of $200,000 and multiples of $1,000 in excess thereof, Saudi Aramco said in a stock market filing after completing the sale.
Saudi Aramco will use the net proceeds from the bond issue for general corporate purposes or any other purpose specified in the final terms for a series of bonds, an earlier filing showed.
According to the filing, these unsecured bonds are in 10-,30-, and 40-year tenures. Saudi Aramco will pay 5.25% interest for bonds maturing in 10 years, 5.75% for bonds maturing in 30 years, and 5.875% for bonds maturing in 40 years.
Aramco will seek listing of the bond on the London Stock Exchange’s main market.
Citi, Goldman Sachs International, HSBC, J.P. Morgan, Morgan Stanley, and SNB Capital were Active Joint Bookrunners for the issue.
Furthermore, Abu Dhabi Commercial Bank, Capital, Bank of China, BofA Securities, BSF Capital, Emirates NBD Capital Limited, First Abu Dhabi Bank, GIB Capital, Mizuho, MUFG, NATIXIS, Riyad Capital, SMBC Nikko, and Standard Chartered Bank are acting as Passive Joint Bookrunners.
Aramco is tapping the debt market after three years when it issued three-tranche Islamic bonds or sukuk to mop up $6 billion.
Aramco has signed a deal to acquire a 50% stake in the Jubail-based Blue Hydrogen Industrial Gases Company, a wholly-owned subsidiary of Air Products Qudra, the energy giant said on Wednesday.
Share sale The Saudi government has reportedly raised as much as $12.4 billion (SAR 46.3 billion) from its secondary share sale in Aramco, after exercising an over-allotment portion. Saudi Aramco earlier last month said it was selling 1.54 billion shares or 0.64% stake in Aramco, which excluded the green shoe option in the secondary share offering.
The proceeds from the share offering are set to finance the oil-rich Gulf state’s economic diversification efforts in line with its Vision 2030.
Aramco had raised $29.4 billion (SAR 110.3 billion) by offering 1.7% of its shares on the Saudi bourse in December 2019.
