(Update) January 26, 2026, 9:39 PM GMT: Article updated with pricing details in first three paragraphs.
Saudi Aramco priced a $4 billion bond sale, its first note sale this year, as the world’s largest oil producer steps up borrowing to fund investment and dividends.
The government-owned oil producer sold four bonds maturing in three to 30 years, according to a person familiar with the matter. The longest portion of the deal will pay 1.3 percentage point above Treasuries, said the person, who asked not to be identified because they are not authorized to speak publicly. That’s roughly a quarter-point less than initial pricing discussions.
Overall, the sale attracted more than $22 billion of bids at the peak, with final books over $14 billion, the person said.
Aramco is a key contributor to Saudi state finances, with large dividend payments supplementing royalties linked to crude sales. As oil prices have dipped and OPEC+ policy limited Saudi production, cash flows lagged payouts before a rebound in the third quarter. Aramco’s $17 billion in debt sales over the last two years helped support payouts.
Saudi Arabia’s budget remains heavily dependent on oil revenue as the kingdom pursues an ambitious modernization drive. Crude prices remain well below levels needed to balance the state budget, forcing the government to project spending shortfalls for the coming years.
Aramco has turned to debt to augment its cash flow and plans to invest more than $50 billion this year in oil and natural gas production, while maintaining its high base dividend of $21 billion. In November, the company reported a surprise jump in third-quarter profit as rising production outweighed lower crude prices. Earnings are set to slip for the full year, estimates compiled by Bloomberg show.
While Brent crude has risen this year amid geopolitical tensions, including US attacks on or threats of action against fellow OPEC producers Venezuela and Iran, the global benchmark lost almost 20% last year.
Brent was trading below $66 a barrel on Monday, while Saudi Arabia needs levels above $90 a barrel to balance its budget under current spending plans.
Aramco’s gearing — a measure of indebtedness — remains low relative to industry peers, and the company plans to gradually raise it, Chief Financial Officer Ziad Al-Murshed said on conference calls this year. Aramco has also signaled that further debt sales are planned.
Lenders appointed as active joint bookrunners for the sale were Citigroup Inc., Goldman Sachs Group Inc., HSBC Holdings Plc, JPMorgan Chase & Co. and Morgan Stanley.
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