Aramco plans USD-denominated bonds under GMTN program

Logo of Saudi Aramco

Saudi Arabian Oil Co. (Saudi Aramco) announced plans to issue international bonds pursuant to its global medium-term note (GMTN) program in US dollars. These bonds will be senior unsecured notes.

According to a statement to Tadawul, the company said that the offer value will be determined upon market conditions, and the bonds will constitute U.S.$ denominated, direct, general, unconditional and unsecured obligations of the issuer.

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The net proceeds from each issue of bonds will be used by Saudi Aramco for general corporate purposes or for any other purpose specified in the final terms for a series of bonds, the statement added.

Bond issuance will be subject to the approval of the official authorities. In addition, it will be issued in accordance with Rule 144A/Reg S offering requirements under the US Securities Act of 1933, as amended. The stabilization rules of the Financial Conduct Authority (FCA) and the International Capital Market Association (ICMA) will also apply to the issuance. Application will be made for the bonds to be admitted to the official list of the FCA and to the London Stock Exchange plc and for such bonds to be admitted to trading on the London Stock Exchange’s main market.

Saudi Aramco has mandated Citi, Goldman Sachs International, HSBC, J.P. Morgan, Morgan Stanley and SNB Capital as active joint bookrunners to organize a series of fixed income investor meetings commencing July 9, 2024. Abu Dhabi Commercial Bank, ANB 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 have been mandated as passive joint bookrunners.

The offering of the bonds will be limited to qualified investors in the jurisdictions in which the offering will be made in accordance with the rules and regulations of such jurisdictions, the statement further indicated.