Skip to content Skip to Search
Skip navigation

Aramco to issue new bonds after $11bn share sale

Saudi Aramco's secondary share offering was the largest in Europe, the Middle East and Africa since 2000 Reuters
Saudi Aramco's secondary share offering was the largest in Europe, the Middle East and Africa since 2000

Saudi Aramco has appointed regional and global bankers for a new bond sale just a month after raising more than $11 billion from a secondary share offering.

The oil giant, listed on the Saudi stock exchange, will issue senior unsecured US dollar-denominated bonds. The fund will aid in its general corporate purposes or any other purpose under the terms of the issuance.

Investor calls for benchmark debt issue will start on Tuesday. The bonds will be listed on the London Stock Exchange.

Citi, Goldman Sachs International, HSBC, J.P. Morgan, Morgan Stanley and SNB Capital will work as joint active bookrunners.

Abu Dhabi Commercial Bank, SNB Capital, Bank of China, BofA Securities, BSF Capital, Emirates NBD Capital, First Abu Dhabi Bank, GIB Capital, Mizuho, MUFG, Natixis, Riyad Capital, SMBC Nikko and Standard Chartered Bank were named as passive joint bookrunners.

The total amount to be raised was not disclosed, but Aramco said “the proceeds will be subject to market conditions”.

Saudi Aramco said in May that it is planning to launch nearly 100 projects in the next three years to modernise existing oil and gas facilities and increase output and treatment capacities.

It also makes substantial international investments to build its global liquified natural gas portfolio.

Its capital investments are expected to reach between $48 billion and $58 billion in 2024, compared with $49.7 billion last year. The company plans to increase spending until around the middle of this decade.

In June, Aramco closed its secondary share offering, securing SAR42.1 billion ($11.2 billion) for the government exchequer.

The proceeds from the offering will rise to SAR46.31 billion if the over-allotment option is exercised in full.

The offering was the largest secondary offering in Europe, Middle East and Africa since 2000 and the largest equity offering in the Middle East after Aramco’s own initial public offering in 2019.

Fitch Ratings said in May that the total debt capital market in the GCC is likely to cross $1 trillion this year after reaching $940 billion in the first quarter of 2024.

More than a third of GCC debt issued last year was sukuk, which are sharia-compliant bonds developed as an alternative to conventional bonds.

Fitch data showed that in Q1 2024, GCC banks issued more US dollar debt, 51 percent of which was sukuk, than in full-year 2023. 

Latest articles

People, Person, Groupshot APQ CEO Ebubekir Koyuncu (sitting left) and Aramco acting senior vice president of new business development Mohanad M Alamdar at the signing ceremony

Saudi Aramco bolsters blue hydrogen portfolio 

Saudi Aramco has acquired a 50 percent stake in Jubail-based Blue Hydrogen Industrial Gases Company (BHIG), a wholly-owned subsidiary of Air Products Qudra. No financial details were disclosed. The transaction, subject to standard closing conditions, includes options for the oil giant to offtake hydrogen and nitrogen.  The remaining 50 percent will be owned by APQ, […]

Egypt's SCA is seeking revenue of $9 billion from the Suez Canal operation in 2024/2025, 25 percent more than the previous year

Egypt to float Suez Canal subsidiary next year

Egypt’s Suez Canal Authority (SCA) is planning to list Canal Mooring & Lights Company, a specialist in the mooring and unmooring of ships, on the local bourse, a news report said. The proposed listing will take place early next year, Bloomberg Ashraq reported, quoting SCA’s chairman Osama Rabie. In June 2023, the official confirmed the […]

Aircraft, Transportation, Vehicle

Near-space balloon flights to start from Abu Dhabi next year

European space exploration company Eos-X Space will begin operating balloon flights to the edge of space from Abu Dhabi in the third quarter of 2025, as it aims to gain a bigger stake in the $9 billion space tourism industry. The UAE capital will host the launch facility and spaceport, including a hotel complex on […]

A view of Park Hyatt Abu Dhabi hotel and villas. Abu Dhabi National Hotels has invested AED100m in rebranding five hotels in Dubai

Abu Dhabi National Hotels hires banks for catering unit IPO

Abu Dhabi National Hotels, which trades on the Abu Dhabi stock exchange, has appointed banks to work on the initial public offering of its catering business, according to a news report. Citigroup and First Abu Dhabi Bank will oversee on the flotation of ADNH Catering, raising between $300 million and $400 million, Bloomberg reported, citing […]