Aramco issued a fresh USD-denominated bond yesterday under its global medium term note program, raising USD 5 bn over three tranches, Reuters reported, citing fixed income news service IFR. Proceeds will go to general corporate purposes, and the Reg-S compliant paper will be listed on the London Stock Exchange, according to a Tadawul disclosure.

The breakdown: The oil giant priced the USD 1.5 bn five-year tranche at 80 bps over US treasuries, compared to an initial price point of 115 bps. The 10-year notes raised USD 1.25 bn and were priced at 95 bps, down from 130 bps. Finally, the longest-dated 30-year tranche — valued at USD 2.25 b — was priced at 155 bps over US treasuries, compared to the initial 185 bps.

REFRESHER- The move, which is subject to market conditions and regulatory approvals, comes nearly a year after Aramco last tapped the debt market with a USD 6 bn international bond sale.

Why now? Aramco’s return to the debt market comes as the oil giant navigates a dip in earnings, posting a 4.6% y-o-y drop in its 1Q net income. Aramco was also said to be weighing asset sales to unlock capital amid plans for international expansion.

ADVISORS- Aramco tapped our friends at HSBC, alongside Citi, Goldman Sachs, and JP Morgan as active joint bookrunners. Meanwhile, Abu Dhabi Commercial Bank, Bank of China, BofA Securities, Emirates NBD Capital, First Abu Dhabi Bank, Mizuho, MUFG, NATIXIS, Riyad Capital, SMBC, SNB Capital and Standard Chartered Bank served as passive joint bookrunners.

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