Aramco sets initial price guidance for medium-term international bonds

Logo of Saudi Aramco

Saudi Arabian Oil Co. (Saudi Aramco) set the initial price guidance for its medium-term international bonds, which began on July 9, Reuters reported, citing International Financing Review (IFR).

Aramco set the initial price guidance for the 10-year tranche at 140 basis points (bps) over US Treasury bonds, Reuters reported.

Additionally, the company placed the initial price guidance for the 30-year and 40-year tranches at 180 bps and 195 bps, respectively, over US Treasury bonds.

On July 9, Aramco started the issuance of international bonds under its Global Medium Term Note Program, data compiled by Argaam showed.

Aramco aims to raise at least $3 billion through its issuance of international USD-denominated bonds, Bloomberg reported, citing sources. The proceeds from the issuance will be used to refinance existing debts and contribute to the company's investment program.