Aramco to Issue Three-Tranche Dollar-Denominated Bonds

Saudi Arabian Oil Company (Saudi Aramco) announced its intention to issue international bonds under its dollar-denominated international medium-term note program. These notes will be senior and unsecured by Saudi Aramco’s assets, indicating that the offering value will be determined based on market conditions.

According to a statement published on Tadawul, the notes will constitute dollar-denominated, direct, general, unconditional, and unsecured obligations of Saudi Aramco.

The net proceeds from each issuance of the notes will be used for Saudi Aramco’s general corporate purposes or for any other purpose specified in the final terms of the series of notes.

The company explained that the offering of the notes is subject to the approval of relevant regulatory authorities, and that the notes will be offered under the provisions of Rule 144A/Reg S under the U.S. Securities Act of 1933, as amended. The stability rules of the Financial Conduct Authority and the International Capital Market Association will also apply to the offering. An application will be made for the Bonds to be admitted to the Official List of the Financial Conduct Authority and the London Stock Exchange, and for the Bonds to be admitted to trading on the London Stock Exchange.

Saudi Aramco has appointed HSBC, Goldman Sachs International, J.P. Morgan, and Citi as joint active bookrunners. SMBC, NCB Capital, Riyad Capital, MUFG, First Abu Dhabi Bank, Abu Dhabi Commercial Bank, Bank of China, Standard Chartered Bank, Emirates NBD Capital Limited, Merrill Lynch Saudi Arabia, Mizuho, ​​and Natixis as joint passive bookrunners. It is worth noting that the offering of these bonds will be limited to qualified investors in the countries where the offering will take place, in accordance with the laws and regulations in force in those countries.