Saudi Aramco returned to the debt market on Tuesday after a three-year hiatus, appointing banks to sell 10-, 30- and 40-year bonds, a banking document showed.
The document did not reveal the size of the issue, according to Reuters, but banks will arrange contacts with investors today for the potential sale of standard-sized bonds.
A source familiar with the matter said that Aramco is likely to raise at least $3 billion from the three tranches.
Gulf companies and governments have been flocking to debt markets since the start of the year to take advantage of the latest declines in global interest rates, with Saudi Arabia issuing $12 billion in dollar-denominated bonds in January.
Aramco shares fell 0.53% to 28.10 riyals ($7.49) at the time of writing.
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Aramco last tapped global debt markets in 2021 when it raised $6 billion in three-tranche sukuk, and indicated in February that it would likely issue bonds this year.
The Saudi government also raised $11.2 billion from the sale of a 0.64% stake in Aramco last month, potentially boosting the kingdom’s finances and its goal of weaning its economy off oil under Saudi Vision 2030.
Aramco maintained its $31 billion dividend despite a 14% drop in first-quarter earnings, and is expected to announce payments of $124.3 billion for 2024, most of which will go to the Saudi government.
Another portion will be transferred to the Public Investment Fund, the kingdom’s sovereign wealth fund that is spearheading Saudi Vision 2030 initiatives. In May, the fund acquired an 8% stake in Aramco from the government, doubling the fund’s stake in Saudi Aramco.
Aramco, one of the world’s most profitable companies, has been a source of wealth for Saudi Arabia for decades.
Bookkeepers
Citi, Goldman Sachs International, HSBC, JPMorgan, Morgan Stanley and SNB Capital were appointed as joint active bookrunners.
Abu Dhabi Commercial Bank, Bank of America Securities, Bank of China, Emirates NBD, First Abu Dhabi Bank, GIB Capital and Mizuho have been appointed as Joint Bookrunners.
