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Saudi Aramco returns to debt market with three-tranche dollar bond sale
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Saudi Aramco returns to debt market with three-tranche dollar bond sale
Jul 8, 2024 10:53 PM

July 9 (Reuters) - Energy giant Saudi Aramco

made its return to the debt market on Tuesday after a three-year

hiatus, mandating banks for 10-, 30- and 40-year senior

unsecured tranche debt sales, a document from one of the lenders

showed.

The banks will arrange investor calls on Tuesday for the

potential sale of benchmark-sized notes, according to the

document, which did not disclose the size of the issuance.

Gulf companies and governments have rushed to tap debt

markets since the start of the year to take advantage of recent

falls in global interest rates, with oil-rich Saudi Arabia

issuing $12 billion of dollar-denominated bonds in January.

Aramco, which had last tapped global debt markets in 2021,

when it raised $6 billion from a three-tranche sukuk or Islamic

bond, flagged in February it was likely to issue a bond this

year.

The Saudi government also raised $11.2 billion from a 0.64%

stake sale in Aramco last month, which could boost the country's

funding and its aim of shifting the economy away from oil under

a plan called "Vision 2030".

Citi, Goldman Sachs International, HSBC ( HSBC )

, JP Morgan Chase, Morgan Stanley ( MS ) and SNB

Capital have been appointed as joint active

bookrunners for the three-part bond.

Abu Dhabi Commercial Bank, BofA Securities, the Bank of

China, Emirates NBD, First Abu Dhabi Bank, GIB Capital and

Mizuho are among the bank that are acting as joint passive

bookrunners.

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