By: AGBI

Saudi Aramco has launched a $4 billion bond sale which is already five times oversubscribed.

The order book of the four-part offering reached $21 billion, allowing the company to tighten pricing across all maturities, Reuters reported, citing fixed-income news service IFR.

The world’s largest oil company issued $500 million, $1.5 billion, $1.25 billion and $750 million in bonds with maturities of three, five, 10 and 30 years respectively,

Spreads were tightened by 35 to 40 basis points, the report said. 

In September Aramco raised $3 billion from a global sukuk sale after securing $5 billion from a bond sale in May.

The company raised $11 billion last August through a lease-and-leaseback agreement for its Jafurah gas processing facilities with a consortium led by Global Infrastructure Partners, part of BlackRock.

Saudi Arabia began 2026 with a record amount of dollar-denominated bond sales and analysts predict debt issuances will grow as big-ticket projects advance and oil prices ease.

Saudi debt issuances have doubled over the past few years from about $3 billion a month in 2023 to around $6.4 billion a month last year.

“The activity is well above long-term averages,” Bashar Al Natoor, global head of Fitch Ratings’ Islamic Finance Group, said.

“With Saudi Vision 2030 we expect the kingdom to continue developing its debt capital markets, supported by funding diversification, ambitious giga-projects and capital market development initiatives.”

Saudi Arabia’s government owns 81.5 percent of Aramco, and the Public Investment Fund holds 16 percent, leaving 2.5 percent available to minority investors.

Aramco shares closed 0.2 percent lower at SAR25.26 on Monday. The stock is up 24 percent so far this year.