Saudi Aramco raises $5 billion in bond issuance amid resilient economic outlook

State oil giant’s successful multi-tranche offering underscores investor confidence as Saudi Arabia pushes ahead with diversification plans

DHAHRAN, Saudi Arabia (MNTV) — Saudi Aramco has announced the successful completion of a $5 billion bond issuance across three tranches under its Global Medium Term Note Program, amid growing global investor confidence in the Kingdom’s economic resilience and diversification strategy.

The bonds, listed on the London Stock Exchange, include $1.5 billion in senior notes maturing in 2030 with a 4.75% coupon, $1.25 billion maturing in 2035 at 5.375%, and $2.25 billion maturing in 2055 with a coupon rate of 6.375%. 

Aramco’s Executive Vice President of Finance and CFO, Ziad Al-Murshed, said the issuance was met with strong demand, citing the “diversified orderbook” as a reflection of global investor confidence in the company’s financial stability and long-term credit standing.

“Pricing the offering with no new issuance premium across all tranches clearly reflects Aramco’s unique long-term credit proposition,” he said. “We remain committed to our disciplined approach towards capital management as we continue to execute our growth strategy.”

The new issuance comes as Aramco faces pressure from falling oil prices, which have declined from around $82 per barrel in January to below $65 in early June, according to energy market data. 

Despite reporting a net profit of $106 billion in 2024, Aramco’s debt-to-equity ratio rose to 5.3% by March 2025, driven in part by its commitment to maintain shareholder dividends.

The Kingdom’s broader economic indicators, however, remain strong. The International Monetary Fund recently raised its forecast for Saudi Arabia’s GDP growth in 2025 to 6%, supported by non-oil sector expansion and a rebound in private sector activity.

The Riyad Bank Purchasing Managers’ Index climbed to 55.8 in May 2025, its highest in four months, signaling increased output, new orders, and employment in the non-oil economy.

As part of Vision 2030, Saudi Arabia continues to push forward with major diversification initiatives. 

Last week, Saudi renewables developer ACWA Power signed an MoU with Malaysia to develop up to 12.5 gigawatts of renewable energy capacity by 2040, projecting the Kingdom’s reach in South East Asia. 

Meanwhile, the Saudi AI company Humain announced ambitions to process 7% of global artificial intelligence workloads by 2030.

The Kingdom’s ongoing strategy of coupling fiscal prudence with expansive investment in technology and sustainability has positioned it as a key emerging-market player amid global economic volatility.