Saudi Aramco sold its first dollar-bond sale of 2025 on Tuesday, a $5 billion deal as the world’s biggest oil exporter looks to leverage its balance sheet.
The transaction consists of three tranches, according to a person familiar with the matter who asked not to be identified as they’re not authorized to speak publicly. The longest-dated bond, a $2.25 billion 30-year issue, will yield 1.55 percentage point more than Treasuries, the person added, compared with initial price talk of about 1.85 percentage point. Proceeds will go toward general corporate purposes.
Aramco sold $9 billion of notes last year, its first such issuance since 2021, and Chief Financial Officer Ziad Al-Murshed said in November that more was in the cards.
The company’s net debt rose to the highest in almost three years during the first quarter as it spends tens of billions of dollars on operations and a massive dividend amid softened oil prices. Aramco’s gearing ratio – a measure of its indebtedness – of 5.3 percent is far below that of most other oil majors, giving the firm room for increased borrowing.
Tuesday’s sale occurred amid a debt spree by the Saudi government and affiliated companies. The kingdom’s debt levels jumped the most ever last quarter as it borrows to help cover an expected budget shortfall resulting from an ambitious economic diversification plan and falling oil prices.
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