Saudi Aramco Aims to Raise Up to $3 Billion Through Dollar Bonds ๐ฆ๐ฐ
Saudi Aramco, the worldโs leading oil exporter, is set to raise up to $3 billion through the issuance of U.S. dollar-denominated sukuk (Islamic bonds). The two-tranche bond offering will feature five and 10-year maturity options, according to sources familiar with the deal. Investor calls for the offering are expected to begin on Tuesday. ๐๐
This marks another step in Saudi Aramco's strategy to secure funding as part of the kingdom's Vision 2030 initiative, which aims to diversify the Saudi economy beyond oil. ๐ข๏ธ๐ In July, Aramco successfully raised $6 billion from its first bond sale in three years, signaling robust investor interest.
Aramco is expected to pay out $124.3 billion in dividends in 2024, with the majority going to the Saudi government, which owns 81.5% of the company. The Public Investment Fund holds an additional 16% stake. ๐๏ธ
Several major banks are involved as bookrunners for the sukuk offering, including Citigroup, Goldman Sachs, HSBC, and JP Morgan. These bonds are expected to attract strong interest from investors, given Aramcoโs reputation and the global demand for energy-related securities. ๐
Saudi Arabiaโs current oil production stands at around 9 million barrels per day, which is approximately 25% below its full capacity. The country is focusing on generating additional revenue to support its long-term economic goals, including investments in new sectors and reducing its reliance on oil. ๐ฑ