Aramco Eyes $6 Billion Bond Sale

Saudi Arabian oil giant Aramco is poised to secure a substantial $6 billion through a three-part bond issuance, according to sources familiar with the matter. The energy behemoth has enlisted the services of banks to underwrite the bond sale, with maturities spanning 10, 30, and 40 years.

While the exact amount to be raised across the three tranches remains undisclosed, industry experts speculate it could exceed $3 billion. Aramco has yet to provide an official comment on the matter.

The decision to tap the debt market comes amid favorable conditions, mirroring a trend among Gulf companies and governments. Earlier this year, Saudi Arabia successfully raised $12 billion through dollar-denominated bonds and an additional $5 billion via sukuk. Aramco itself has a history of utilizing debt markets, having raised $6 billion through sukuk in 2021.

Aramco's substantial cash flow, primarily derived from its oil operations, has been a cornerstone of Saudi Arabia's economy. The company is projected to distribute dividends worth $124. 3 billion in 2024, a significant portion of which will flow to the Saudi government.

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