Saudi Aramco could tap debt markets again after US$5 billion bond sale

Published Fri, May 30, 2025 · 09:10 PM

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 International Monetary Fund estimates it needs oil at over US$90 a barrel for a balanced budget. Brent Crude was trading around US$64.40 on Friday. REUTERS

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