Aramco expects to raise $6B from its medium-term international bonds

Logo of Saudi Arabian Oil Co. (Saudi Aramco) 

Saudi Arabian Oil Co. (Saudi Aramco) expects to raise $6 billion from its medium-term international bonds, Reuters reported.

The company plans to raise $2 billion from 10-year bonds, with a price spread of 105 basis points (bps) over US Treasuries. Another $2 billion will come from 30-year bonds, priced at 145 bps over US Treasuries. The last $2 billion will be raised from 40-year bonds, priced at 155 bps over US Treasuries.

Demand for the bonds exceeded $31.5 billion, with over $11 billion for the 10-year and 30-year tranches, respectively, and more than $9.5 billion for the 40-year tranche.

On July 9, Aramco started the issuance of international bonds under its Global Medium Term Note Program, according to data available on Argaam.

Aramco aims to raise at least $3 billion through the 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