Latest news with #Aramco
Arabian Post
10 hours ago
- Business
- Arabian Post
Aramco Eyes Islamic Debt Market Amid Fiscal Pressures
Saudi Aramco has filed a new prospectus for an Islamic bond issuance programme, indicating a potential return to the debt markets following a $5 billion conventional bond sale earlier this week. The prospectus, dated 30 May, was submitted to the London Stock Exchange, where the sukuk would be listed. Under its terms, Aramco has a year to issue the Islamic bonds. This move comes as the company navigates economic uncertainties and increased oil supply, which have impacted crude markets and reduced the oil exporter's profits. In March, Aramco announced plans to reduce its dividend by nearly a third due to declining profits and free cash flow. The Saudi government relies heavily on revenue from Aramco, including dividends, royalties, and taxes. Last year, oil accounted for 62% of state revenue. The International Monetary Fund estimates that Saudi Arabia requires oil prices above $90 per barrel to balance its budget, while Brent crude is currently trading around $64.40.
Argaam
a day ago
- Business
- Argaam
Aramco publishes new sukuk issuance prospectus
Saudi Aramco published a new prospectus for its sukuk issuance program, signaling the state oil major may soon tap the debt markets. The prospectus, submitted to the London Stock Exchange where the sukuk would be listed, is dated May 30, Reuters reported. Aramco has a year to issue sukuk under its terms. The oil giant priced its dollar-denominated three-part bonds at $5 billion and set their yield spread, according to Argaam data. The net proceeds from each bond issuance will be used by Saudi Aramco for general corporate purposes or any other purpose specified in the final terms for a series of bonds.
Business Times
a day ago
- Business
- Business Times
Saudi Aramco could tap debt markets again after US$5 billion bond sale
[DUBAI] Saudi Aramco has published a new prospectus for its issuance programme of Islamic bonds or sukuk, signalling the state oil major may soon tap the debt markets again after it raised US$5 billion from a three-part bond sale this week. The prospectus, submitted to the London Stock Exchange where the sukuk would be listed, is dated May 30. Aramco has a year to issue sukuk under its terms. Aramco earlier this week raised US$5 billion from a sale of conventional bonds. The borrowing comes after economic uncertainty and rising supply hit crude markets, denting the top oil exporter's profits. 'Aramco is likely looking to take advantage of a window of relative market calm to issue debt again,' said Zeina Rizk, co-head of fixed income at Amwal Capital Partners. Aramco in March said it expected to slash its dividend this year by nearly a third as profits and free cash flow decline. Reuters reported last week that Aramco is exploring potential asset sales to free up funds as it pursues international expansion and weathers lower crude prices. The Saudi government is heavily reliant on generous payouts from Aramco, its longtime cash cow, also including royalties and taxes. Oil receipts made up 62 per cent of state revenue last year. The government does not disclose at which crude price its books are balanced. The IMF estimates it needs oil at over US$90 a barrel for a balanced budget. Brent Crude was trading around US$64.4 on Friday. REUTERS
Business Recorder
a day ago
- Business
- Business Recorder
Saudi Aramco could soon issue Islamic bonds, prospectus shows
DUBAI: Saudi Aramco has published a new prospectus for its issuance programme of Islamic bonds or sukuk, signalling the state oil major may soon tap the debt markets again after it raised $5 billion from a three-part bond sale this week. The prospectus, submitted to the London Stock Exchange where the sukuk would be listed, is dated May 30. Aramco has a year to issue sukuk under its terms. Aramco earlier this week raised $5 billion from a sale of conventional bonds. The borrowing comes after economic uncertainty and rising supply hit crude markets, denting the top oil exporter's profits. Saudi Aramco seeks funds through three-part bond sale Aramco in March said it expected to slash its dividend this year by nearly a third as profits and free cash flow decline. The Saudi government is heavily reliant on generous payouts from its longtime cash cow Aramco, which also include royalties and taxes. Oil receipts made up 62% of state revenue last year. The government does not disclose at which crude price its books are balanced. The IMF estimates it needs oil at over $90 a barrel for a balanced budget. Brent crude was trading around $64.4 on Friday.
Argaam
a day ago
- Business
- Argaam
Upgrade of 30% of Saudi plants to generate SAR 250B returns: Official
Khalil Salamah, Vice Minister of Industry Affairs, said the upgrade of 30% of Saudi Arabia's factories will generate an economic return of up to SAR 250 billion, Al-Eqtisadiah newspaper reported. He added that the upgrade requires significant financial investments, noting that the returns will be substantial and rewarding. By the end of 2025, the total number of factories entering the industrial transformation phase will reach around 4,000, with about 3,000 more factories targeted in the coming years. Salamah indicated that the amount spent so far on upgrading production lines has reached SAR 800 million, expecting this amount to reach between SAR 18 billion and SAR 22 billion in the coming years. He confirmed that the ministry will provide incentives to reduce the burden on factories, enabling them to recover capital faster. The Industrial Beacons Program aims to develop 1,300 factories, noting that only 5% of them show genuine indicators of readiness to enter the transformation track. So far, 10 factories have committed to two-year investment plans for transformation worth between SAR 600 million and SAR 800 million, including 5 factories affiliated with Aramco that are in advanced stages of implementation. According to Argaam data, Salamah inaugurated the advanced manufacturing and production center that aims to enable the latest advanced manufacturing technologies. This aims to enhance industrial transformation in the Kingdom and elevate the competitiveness of Saudi industry both regionally and globally.
