Saudi Aramco Plans $3 Billion Dollar Sukuk Bond Sale

KSA, 25 September, 2024 : Saudi Aramco has announced initial price guidance for its upcoming 5- and 10-year dollar sukuk bonds, aiming to raise up to $3 billion. The 5-year bond is priced at Treasuries plus approximately 120 basis points, while the 10-year bond is set at Treasuries plus around 135 basis points.

This marks Aramco's second entry into the debt market since July, following a three-year hiatus. The company, which is currently producing about 9 million barrels per day (bpd)—roughly 25% below its capacity—is preparing to pay substantial dividends, primarily to the Saudi government.

As the world's leading oil exporter, Aramco plays a critical role in funding Saudi Arabia's Vision 2030 initiative, aimed at diversifying the economy and reducing dependence on oil. Earlier this month, OPEC+ decided to delay a planned oil output increase amid falling crude prices.

In July, Aramco successfully raised $6 billion from a three-tranche bond sale, its first since issuing a similar amount in Islamic bonds in 2021.

Source : www.zawya.com