Business

Aramco Completes $3 Billion International Sukuk Issuance

Aramco, one of the world’s leading integrated energy and chemicals companies, on Thursday said that it has successfully completed a $3 billion international Sukuk issuance across two tranches.

The transaction was priced on 10 September 2025 and the securities were listed on the London Stock Exchange (LSE) and the tranches consist of $1.5 billion, maturing in 2030, with a profit rate of 4.125% per annum; and $1.5 billion, maturing in 2035, with a profit rate of 4.625% per annum.

Ziad T. Al-Murshed, Aramco Executive Vice President of Finance & CFO, said that they believe this successful issuance reflects the confidence of global investors in Aramco’s exceptional financial resilience and robust balance sheet, as the company continues to optimise its capital structure.

“Our ability to price the offering with a negative new issue premium across both tranches demonstrates Aramco’s unique credit proposition and standing within international capital

markets,” he said.

Earlier Issuances

This is not the first time Aramco has announced Sukuk issuance is not an isolated event but follows a series of successful large-scale debt offerings in 2024 and 2025, reflecting a strategic approach by the company to optimise its capital structure amid evolving market conditions.

Aramco completed a $6 billion bond issuance in July last year, which was split across three tranches with maturities in 2034, 2054, and 2064, all priced with favourable coupons and also listed on the LSE.

Last year’s issuance was oversubscribed more than six times, signalling deep investor demand and underscoring Aramco’s fortress balance sheet and disciplined financial management.

In May this year, Aramco again raised $5 billion through bond issuances under its Global Medium Term Note Program, across multiple tranches maturing in 2030, 2035, and 2055, achieving no new issue premium and thus demonstrating market confidence in its creditworthiness and long-term outlook.

These three issuances are expected to fund capital expenditure programs in oil and gas expansions (including major projects like the Jafurah gas field midstream development) to enhancing liquidity and maintaining financial flexibility.

Aramco is also investing in renewable energy projects, supported by power purchase agreements (PPAs) leveraging the nation’s solar and wind resources, reflecting its commitment to sustainability and long-term energy market evolution.

Global Business Magazine

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