Saudi Aramco is preparing to price new dollar-denominated sukuk, likely split into two tranches with five-year and 10-year maturities, sources told Bloomberg. The move comes just days after Saudi Arabia raised $5.5 billion via sovereign sukuk, which drew $17.5 billion in orders.
This issuance adds to Aramco’s capital-raising activity in 2025. The company sold $5 billion in bonds in May, its first sale of the year, after issuing $9 billion in notes across 2024. Saudi Arabia, as a nation, has now issued nearly $20 billion in dollar- and euro-denominated debt by early September, approaching its 2017 record.
Aramco is tapping Sukuk markets amid pressure from falling oil prices. Despite a 22 per cent drop in Q2 profits, the company preserved its $21.1 billion quarterly dividend and reiterated an $85.4 billion full-year payout target to maintain investor confidence. In parallel, Aramco is pursuing cost discipline and asset monetisation, recently striking an $11 billion lease-back deal for its Jafurah gas assets with a consortium led by BlackRock’s GIP.
This issuance follows a broader surge in Gulf bond activity. The PIF and ADNOC have heavily tapped debt markets this year. The PIF raised several billion via bonds, and ADNOC issued a $1.5 billion sukuk priced at 60 basis points over US Treasuries.
