Saudi Aramco plans international bond issuance after Q3 earnings slump

SINGAPORE (ICIS)–Saudi Aramco is planning to issue international bonds after its earnings were hit by low oil demand amid the coronavirus pandemic.

The bonds will have maturities of three, five, 10, 30 and/or 50 years, subject to market conditions.

“The bonds will be senior, US$ denominated, unsecured by assets,” the Saudi energy giant said in a filing to the Saudi bourse Tadawul on 16 November.

Proceeds from each bond issue will be used partly for general corporate purposes, the company said.

Saudi Aramco has hired Citi, Goldman Sachs International, HSBC, JP Morgan, Morgan Stanley and NCB Capital to arrange investor calls starting from 16 November for the bond issuance, it said.

The company, which is the biggest crude oil exporter in the world, had reported a sharp drop in its third-quarter profit caused by lower crude oil prices, as well as weak refining and chemical margins.

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