Saudi Aramco Begins Selling Bonds for Long-Term Maturity

2024-07-09 07:23:55

(MENAFN) Saudi Aramco has commenced preparations to issue senior unsecured bonds with maturities spanning 10, 30, and 40 years, according to a banking document. The document outlines plans for arranging investor calls starting from Tuesday to gauge interest for the potential sale of bonds that are expected to be benchmark-sized.

Leading global financial institutions, including Citi, Goldman Sachs International, HSBC, JPMorgan, Morgan Stanley, and SNB Capital, have been appointed as joint active bookrunners for the bond issuance. This strategic move aligns with Saudi Aramco's stated intention, articulated by its chief financial officer, Ziad Al-Murshed in February, to tap the bond markets this year.

Saudi Aramco's last foray into the global debt markets was in 2021, when it successfully raised USD6 billion through a three-tranche sukuk sale. The upcoming bond issuance is seen as an opportunity for Saudi Aramco to diversify its funding sources and potentially secure long-term financing at favorable terms amidst ongoing strategic initiatives and global market conditions.

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