JAKARTA – Saudi Aramco, the global oil giant, has successfully raised USD 5 billion (around IDR 81.63 trillion) through a bond offering.

According to Arab News, the senior bonds have been listed on the London Stock Exchange since 27 May 2025 and are divided into three tranches.

The first tranche has a principal of USD 1.5 billion with a 4.75% coupon, the second USD 1.25 billion with a 5.375% coupon, and the third USD 2.25 billion with a 6.375% coupon.

Each tranche carries a tenor of 5, 10, and 15 years, respectively.

Aramco CFO Ziad al-Murshed revealed that demand from global investors exceeded expectations. This enthusiasm, he said, reflects strong investor confidence in the company’s financial resilience.

“Pricing with no premium across all tranches demonstrates the strength of our long-term credit proposition,” al-Murshed said on Tuesday (3/6/2025).

The bonds also showed tighter spreads than the initial guidance. Specifically, the 5-year tranche was priced at 80 basis points (bps) over US Treasuries, while the 10-year and 30-year tranches were priced 95 bps and 155 bps higher, respectively.

This bond issuance follows Aramco’s USD 6 billion sale in July 2024.

Throughout 2025, Saudi Arabia’s Public Investment Fund (PIF) has also raised USD 5.25 billion, including a USD 4 billion bond issuance in January.

Additionally, Masdar Abu Dhabi (a sovereign wealth fund of the United Arab Emirates) recently issued USD 1 billion in green bonds, which were oversubscribed by 6.6 times.

This latest bond sale comes amid mounting business pressures on Aramco.

The company reported a 4.6% drop in first-quarter profit due to sluggish sales and rising operating costs. In March, Aramco also cut its dividend by nearly 30% following a decline in free cash flow.

Aramco continues to explore alternative funding strategies, including potential asset sales and a sukuk (Islamic bond) programme, for which a prospectus was issued in May.

There are indications that the sukuk may be issued within the next 12 months and listed on the London Stock Exchange. (DH/KR/ZH)