Saudi Aramco, the world’s largest oil company, is expected to price a new three-part U.S. dollar bond on Tuesday, according to IFR news service. The offering is part of a broader effort to raise funds. It is expected to be benchmark-sized, typically meaning a value of at least $500 million.
The bond sale comes as Aramco explores ways to boost its financial flexibility. Sources told Reuters that the company is also considering asset sales to support both its international growth and ongoing operations.
Ziad Al-Murshed, Aramco’s Chief Financial Officer, said late last year that the company plans to issue debt regularly. The goal, he noted, is to optimize Aramco’s capital structure and attract a wider range of investors.
This year marks Aramco’s return to the bond market after a three-year break. In 2024, it has already raised $9 billion through two bond issues. In July, the company sold $6 billion in bonds, attracting more than six times the demand of its $5 billion target. A second issuance in October brought in $3 billion through an Islamic bond, which was also six times oversubscribed.
Aramco’s fundraising is key to Saudi Arabia’s broader financial strategy. The Kingdom relies heavily on Aramco’s oil exports and dividend payments to fund Vision 2030—a major reform plan led by Crown Prince Mohammed bin Salman. The program aims to diversify the Saudi economy and reduce its reliance on oil by turning the country into a global investment hub.
However, falling oil prices have put pressure on state finances. Earlier this month, the Saudi Finance Ministry reported a budget deficit of $15.6 billion for the first quarter of 2025. That figure already exceeds half of the $27 billion shortfall projected for the full year. The deficit equals about 2.3% of Saudi Arabia’s GDP.
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