Saudi Aramco completes issuance of $8bn worth of international bonds

SINGAPORE (ICIS)–Saudi Aramco, the world’s biggest crude oil exporter, has completed issuance of international bonds worth $8bn in five tenors.

The bonds are US dollar-denominated and unsecured by assets, the company said in a filing to the Saudi Stock Exchange or Tadawul on 25 November.

Saudi Aramco $8bn* bond issue

Tenor	Coupon rate
3 years	1.250%
5 years	1.625%
10 years	2.250%
30 years	3.250%
50 years	3.500%

*Breakdown by value not provided
Source: Saudi Aramco

A total of 40,000 bonds, also called sukuk, were issued.

Citi, Goldman Sachs International, HSBC, JP Morgan, Morgan Stanley and NCB Capital were underwriters for the Saudi Aramco bonds.

Bond proceeds are expected to partly fund Saudi Aramco’s cash dividends to shareholders even as its third-quarter net profit slumped by nearly half from year-ago levels.

Saudi Aramco has declared cash dividends of Saudi riyal (SR) 70.32bn ($19bn) to shareholders for the September quarter of 2020.

The company’s profitability took a hit from lower crude oil prices and weaker refining and chemical margins.

($1 = SR3.75)

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