Saudi Aramco bond issuance is back in motion as the oil giant plans a new multi-part bond sale worth at least $500 million.
Notably, this latest financial move marks another step in Saudi Arabia’s strategy to secure vital funding for national projects.
Sources familiar with the deal say the new bond sale will be in U.S. dollars and is expected to be benchmark-sized.
Typically, that means the value will exceed the $500 million threshold, showing the scale of Saudi Aramco’s financial goals.
The Saudi Aramco bond issuance comes as the Kingdom focuses on raising money for both expansion and stability.
Essentially, the company may also sell assets to bring in more funds, as reported by unnamed insiders.
Aramco’s Chief Financial Officer, Ziad Al-Murshed, recently said the company plans to issue bonds regularly.
Clearly, this strategy allows Aramco to strengthen its capital structure and attract new global investors.
In 2024, Aramco returned to global debt markets after a long break. It raised $9 billion through two major bond offerings. A $6 billion bond in July was more than six times oversubscribed.
A second issuance in October, worth $3 billion in Islamic bonds, also saw huge investor demand.
Saudi Arabia depends on Aramco’s dividends and oil revenue to fund Vision 2030, the ambitious economic reform program led by Crown Prince Mohammed bin Salman.
In addition, the program includes large-scale projects designed to diversify the economy beyond oil.
However, the recent drop in oil prices has put pressure on public finances. The country posted a $15.6 billion deficit in the first quarter, already more than half the annual forecasted gap of $27 billion.
Therefore, the Saudi Aramco bond issuance is a vital tool for maintaining government spending and long-term development goals.
Importantly, the funds will help support infrastructure, investment projects, and economic reforms.
In conclusion, the latest Saudi Aramco bond issuance shows the Kingdom’s drive to boost its economy. High investor trust should help Aramco raise the needed capital for Local and global growth.
