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Saudi Aramco, the world’s largest oil company, is looking to raise up to $3 billion from U.S.-dollar denominated Islamic bonds, Reuters reported on Tuesday, quoting sources with direct knowledge of the plans.
Aramco, which is also the world’s single biggest crude oil exporter, plans to issue Islamic bonds, the so-called sukuk, in two tranches—five-year notes and ten-year notes. The Saudi oil giant aims to raise up to $3 billion from the bond sale, according to the sources.
Today Aramco announced in a regulatory filing with the Saudi stock exchange, Tadawul, its intention to offer international trust certificates (sukuk) in U.S. dollars.
“The issuance amount is subject to market conditions,” Aramco said in the filing.
The start date of the offering is Tuesday, September 24, with the end date slated for October 2, 2024.
The price, return, and maturity of the Islamic bonds will be determined subject to market conditions, Aramco said.
The Saudi oil giant issued in July a $6-billion bond—its first foray in the bond market since 2021.
Before 2024, the previous time the world’s top oil firm tapped the bond markets was in 2021, when Aramco raised $6 billion via its first Islamic bond denominated in U.S. dollars, orders for which exceeded $60 billion.
Orders for the $6-billion bond in July topped $31 billion.
Aramco is a major source of income for the Saudi government which has large-scale plans for the diversification of the Saudi economy. The Saudi government holds 81.5% directly in Aramco with another 16% held by the kingdom’s sovereign wealth fund—the Public Investment Fund.
The Aramco bond in July came weeks after Saudi Arabia raised $11.2 billion from a share sale of Aramco’s stock.
Saudi Aramco made its debut on the Saudi Stock Exchange in December 2019 and raised around $30 billion in a share listing which became the world’s largest ever.
Since the IPO, the Saudi rulers, including Crown Prince Mohammed bin Salman, have said on several occasions there would be more Aramco shale sales in the future.
