News wire — Oil giant Saudi Aramco has set spread for its dollar-denominated 3-part bonds, fixed income news service IFR reported on Tuesday.
Aramco on Tuesday set the spread for the five-year debt sale at 80 basis points over U.S. Treasuries tighter
than 115 bps over the same benchmark released earlier in the day.
Meanwhile 10-year and 30-year portions’ spread was set at 95 and 155 bps respectively over the same benchmark tightened from 130 and 185 bps, IFR said.
The proceeds from each issue of bonds will be used by Saudi Aramco for general corporate purposes, the company said in a bourse filing.
The debt deal, which is expected to be priced later in the day, will be benchmark-sized, which is usually considered to be at least $500 million.
Earlier this month, Aramco reported a 4.6% drop in first quarter profits, citing lower sales and higher operating costs as economic uncertainty hit crude markets.
Reuters reported last week that the oil giant is exploring potential asset sales to release funds as it pursues international expansion and weathers the impact of lower crude prices.
The company last turned to global debt markets in July last year when it raised $6 billion from a three-tranche bond sale.
Saudi Arabia, which is seeking funds to invest in new industries and wean its economy away from oil under its Vision 2030 plan, has long relied on Saudi Aramco to support economic growth.
Other Gulf issuers have tapped debt markets in recent months, braving a market turmoil caused by U.S. President Donald Trump’s tariff policies.
They include Saudi Arabia’s $925 billion sovereign wealth fund and Abu Dhabi’s renewable energy firm Masdar, which last week raised $1 billion with a green bond.
*Hadeel Al Sayegh and Federico Maccioni, Mohammad Edrees; editing: Kirsten Donovan, Barbara Lewis and David Evans – Reuters
