Aramco raises $8bn in jumbo bond deal

DUBAI: Saudi Aramco has successfully raised $8 billion from a senior, dollar-denominated bond issue, attracting 150 new investors, according to a report by Arab News.

"The successful bond completion reflects investors’ confidence in Saudi Aramco and the Kingdom’s economy, and it implies Saudi Aramco’s resilience amid the ongoing challenges, especially in the energy industry," Khalid H Al-Dabbagh, Senior Vice President of Finance, Strategy and Development said.

The bond included a new tranche with a 50-year maturity.

Aramco, which reported a 44.6 per cent slump in third-quarter profit, needs the money to pay dividends of $37.5 billion for the second half of 2020 and fund its $69.1 billion purchase of 70 per cent of Saudi Basic Industries (Sabic). It also raised a loan of $10 billion this year, to be paid in instalments until 2028, to back that acquisition.

New dawn for the energy industry?

SHARJAH: As extreme weather events become more frequent, environmental campaigners become more vigilant, the public mood becomes more determined, and the investment community becomes more discerning, politicians and businesses alike are making firm commitments to a low-carbon future – and, ultimately, a zero-carbon future.

Oil and Gas is not going to disappear anytime soon. But the way the sector operates will quickly evolve. Adjacent opportunities will soon emerge. And, judging by the tone being set by the region’s governments, I firmly believe that the region and its energy industry could take a leadership role in the coming energy transition, says Jonathan Carpenter, Vice President of New Energy Services at Petrofac.