Santos Limited (ASX: STO) has successfully priced a US$1 billion senior unsecured fixed rate bond transaction, reinforcing its financial position as major development projects approach completion. The Santos 10-year bond issue 2025 demonstrates strong investor confidence in Australia’s energy sector, with the bonds carrying a fixed coupon of 5.75% and maturing in November 2035.
Figure 1: The exterior of Santos Limited’s building
The Santos US dollar bond issuance information reveals itself as a deliberate refinement of the company’s capital structure in light of its growth aspirations, while ensuring balance-sheet strength. Santos Managing Director and Chief Executive Officer Kevin Gallagher said this deal would enable Santos to develop and grow production in a disciplined, low-cost manner, delivering strong cash flows and returns for shareholders from its high-quality, diversified portfolio.
Santos 10-Year Bond Issue 2025 Strengthens Financial Foundation
The Santos US dollar bond offering terms sheet states that the bonds will be issued by Santos Finance Limited, a 100% owned subsidiary of Santos Limited, which is to be guaranteed by Santos Limited. The net proceeds will be used for general corporate purposes and to deliver financial flexibility as the company pursues its strategic priorities.
The transaction demonstrates strong support from debt capital markets for Santos’ business model and growth trajectory. With settlement expected to occur on 13 November 2025, subject to customary closing conditions, the Santos 10-year bond issue 2025 represents a significant milestone in the company’s capital management strategy.
Figure 2: Workers at an on-site facility of Santos Limited
The transaction also reflects healthy demand in debt capital markets for Santos’ business model and growth trajectory. Settlement of the Santos is expected to take place on 13 November 2025 and will be subject to customary closing conditions.
The 5.75% fixed coupon delivers predictable cost-of-financing for the 10-year term, consistent with Santos’ strategy of maintaining a robust balance sheet to fund operational excellence and development projects. This Santos Limited capital structure 2025 update underlines the company’s commitment to prudent investment for growth with financial discipline.
How Capital is Powering the Next Wave of Energy Projects
The global energy industry is still drawing large amounts of capital as businesses juggle the transition while maintaining a reliable supply. Santos’ successful US$1 billion bond pricing reflects investor appetite for established energy producers with diversified portfolios and clear paths to production growth. As the Barossa Gas project nears commencement in Q3 2025 and Pikka Phase 1 guidance advances to Q1 2026, Santos has become a compelling proposition for debt capital providers looking to participate in the Asia-Pacific’s energy story.
Debt Capital Markets Back Santos 10-Year Bond Issue 2025 with Strong Investor Confidence
The fact that the Santos 10-year bond issue 2025 is priced reflects the debt capital market’s confidence in Santos’ strategy and ability to execute. The company has a broad portfolio that covers Eastern Australia and Papua New Guinea, Western and Northern Australia and Timor-Leste, as well as Alaska, providing geographic and product diversification that enhances credit quality.
Figure 3: Kevin Gallagher, Managing Director & Chief Executive Officer of Santos Limited
Santos managing director and chief executive Kevin Gallagher describes the deal as an excellent result for Santos, with competitively priced long-term capital that will allow the company to develop its production base on a disciplined basis. This strategy will deliver robust operating cash flows and returns to shareholders from Santos’ high-quality, balanced portfolio and maintain balance sheet strength and liquidity.
Looking Ahead: Production Growth and Financial Discipline
Shares in Santos last traded at AUD 6.355, within a 52-week range of AUD 5.200 to AUD 8.060, with an average daily volume of 13.1 million shares and demonstrating good liquidity and investor interest.
   
Figure 4: A recent trading chart for Santos Limited (ASX: STO)
The company reaffirmed its 2025 production guidance of 90-95 million barrels of oil equivalent, with unit costs narrowed to US$7.00-7.40 per barrel, highlighting operational efficiency. With the Barossa Gas project 97% complete and Pikka Phase 1 at 91%, Santos remains on track to meet its strategic objectives, supported by solid execution, financial discipline, and strong backing for its recent US$1 billion bond issue.
FAQs
Q1: What is the value of Santos’ bond issue announced in November 2025?
Santos successfully priced a US$1 billion senior unsecured fixed rate bond transaction in the US dollar Rule 144A/Reg S market.
Q2: What is the coupon rate and maturity date for the Santos bonds?
The bonds carry a fixed coupon of 5.75% per annum for a period of 10 years, maturing in November 2035.
Q3: What will Santos use the bond proceeds for?
The Company intends to use the net proceeds from the bond issue for general corporate purposes, offering financial flexibility in pursuing its strategic goals.
Q4: When is the settlement of the Santos bonds expected?
The closing of the offering of the bonds is expected to take place on 13 November 2025, subject to customary closing conditions.
