Latest news with #IslamicBonds
Arab News
3 days ago
- Business
- Arab News
Saudi Aramco could tap debt markets again after $5bn bond sale
DUBAI: Saudi Aramco has published a new prospectus for its issuance program 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. '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. Citi, HSBC and JPMorgan are the arrangers of the sukuk program and are joined as dealers by First Abu Dhabi Bank, Goldman Sachs, Morgan Stanley, SNB Capital and Standard Chartered.
Zawya
3 days ago
- Business
- Zawya
Saudi Aramco could tap debt markets again after $5bln bond sale
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. "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% 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. Citi, HSBC and JPMorgan are the arrangers of the sukuk programme and are joined as dealers by First Abu Dhabi Bank, Goldman Sachs, Morgan Stanley, SNB Capital and Standard Chartered. (Reporting by Yousef Saba in Dubai, Prerna Bedi and Mohd Edrees in Benglauru; Editing by Emelia Sithole-Matarise and David Holmes)
Zawya
23-05-2025
- Business
- Zawya
Algeria plans sukuk issuance in June to fund projects
Algeria intends to issue its first sovereign Islamic bonds (sukuk) in June to fund infrastructure and other domestic projects, an official has revealed. Arrangements for the first such investment tools in the North African OPEC member have reached 'very advanced stages', said Ruzaika Mikatli, director of the public debt office at the Algerian Finance Ministry. 'We hope that this process will be completed before the end of June…we have instructions from the high authorities in the country to accelerate this process,' Mikatli told Parliament this week. In her comments, published by the local press, Mikatli noted that the 2025 budget law allows the Finance Ministry to issue sukuk for the first time in Algeria to enable citizens and foreigners to fund local projects. She said a committee created by the Finance Ministry and other relevant establishments is working to issue 'simple Ijarah sukuk' on the grounds they are the most common and easiest to understand for professionals and citizens alike. Algerian officials said in October that key projects targeted by the Sukuk issuance involve infrastructure, schools, hospitals and facilities that will contribute to boosting growth and improving life quality for citizens in the country. (Writing by Nadim Kawach; Editing by Anoop Menon) (
Zawya
14-05-2025
- Business
- Zawya
Egypt aims to reduce external debt by $1-2bln this fiscal year: Finance Minister
Egypt's Minister of Finance, Ahmed Kouchouk, has stated that the government is targeting a reduction in external debt by $1bn to $2bn during the current fiscal year. This comes as part of a broader strategy to lower government indebtedness, which includes exploring new financing instruments. Kouchouk announced that the government is considering issuing local sukuk (Islamic bonds), bonds targeted at citizens, and others specifically for Egyptians residing abroad. He noted that the external debt of budget entities decreased by approximately $3bn last year. Speaking at the annual conference of the Information and Decision Support Center and Cairo University's Faculty of Economics and Political Science, Kouchouk said the government is working on three fiscal policy priorities to stimulate economic activity and reduce government debt. He added that efforts are also underway to expand the private sector's contribution to the Egyptian economy through ambitious tax and customs facilitation packages. 'We have begun implementing 20 measures in taxes and another 30 measures in customs on a path to incentivise investment,' he stated, clarifying that the goal is to 'simplify tax and customs procedures and reduce production costs in Egypt.' Kouchouk added, 'We expect very ambitious results from the path of trust, partnership, and support for the business community that will drive efforts to broaden the tax base.' He pointed out, 'We achieved the highest increase in tax revenues since 2005, at a rate of 38% during the past ten months, without imposing any new burdens.' He indicated that 'we have enormous scope to overcome tax challenges, many of which do not require legislative amendments,' affirming the aim to 'create sufficient fiscal space to increase spending on supporting economic competitiveness, human development, and debt reduction.' The Finance Minister noted that the private sector 'is moving quickly, recently accounting for about 60% of total investments during the first half of the current fiscal year, with an annual growth rate of 80%.' Mr Kouchouk confirmed that allocations for stimulus packages to support economic activities in the new budget for the upcoming fiscal year have been doubled. He explained that EGP 78bn has been earmarked as 'the largest exceptional support to encourage industrial, export, and tourism activities.'
