Saudi Aramco will issue a US dollar-denominated bond in multiple tranches to raise cash amid weak oil prices. The state-owned oil giant on Monday said it had hired a group of banks ahead of the bond issuance. The announcement comes amid a spree of debt issuances in the Gulf region in the international bond market. Bond issuances from the region have exceeded $100 billion since the start of 2020.
Aramco said it had hired HSBC, Goldman Sachs, Morgan Stanley, JPMorgan, Citi, and NCB Capital to arrange investor calls beginning on Monday. According to the company’s filing to the bourse, BNP Paribas, Credit Agricole, Societe Generale, SMBC Nikko, MUFG, Mizuho, BOC International, BofA Securities, and First Abu Dhabi Bank will also be involved in the transaction. The document also suggests that the bonds will be offered in multi tranches spanning from three to 50 years.
Aramco raised $12 billion in its debut in the international bond markets in 2019. It also raised a $10 billion loan earlier in 2020. Now, it needs cash to finance the $69.1 billion acquisition of 70% of SABIC and pay $37.5 billion in dividends for this year’s second half.
