Wednesday 25 November 2020

#Saudi Aramco announces completion of $8bln international bond issuance | ZAWYA MENA Edition

Saudi Aramco announces completion of $8bln international bond issuance | ZAWYA MENA Edition

The world’s largest oil producer Saudi Aramco confirmed on Wednesday it has just completed the issuance of $8 billion bonds that will help cover a multi-billion-dollar payout for its shareholders.

The oil giant kicked off the international bond issuance on November 16, marking its first time to return to the debt markets since last year.

The issuance of multi-year tranche bonds comes as the state-owned firm looks to raise cash amid low oil prices and the COVID-19 pandemic.

In a bourse filing to the Saudi Stock Exchange (Tadawul), Aramco said it has issued a total of 40,000 bonds/ sukuk, with a yield of 1.25 percent for bonds maturing in three years, 1.625 percent for bonds maturing in five years, 2.25 percent for 10 years, 3.25 percent for 30 years and 3.5 percent for bonds maturing in 50 years.

It’s the first time the oil giant has offered a bond maturity of 50 years.

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