Aramco Likely to Sell Debt This Year With Longer-Dated Focus - Bloomberg

Aramco Likely to Sell Debt This Year With Longer-Dated Focus - Bloomberg

Saudi Aramco may sell bonds this year as financial markets have improved and the company looks to offer longer-dated debt, according to the state oil producer’s finance chief.

The company could issue debt with a duration of 15 to 50 years, Chief Financial Officer Ziad Al-Murshed said at a conference in Riyadh. The ability to sell debt with that duration indicates investors see Aramco, which already has one 50-year bond, remaining relevant in the business of selling oil and natural gas for transport and chemicals production through at least 2070.

“Markets are becoming more stable, so you can expect us to be active in the market,” Al-Murshed said. “We’re always prioritizing longer-term over short-term” maturities. When asked if the company could sell bonds in 2024, he said that was “likely.”

Economies have been battered by persistent inflation and higher energy costs over the past few years as governments seeking to bounce back from the pandemic have contended with conflicts from Europe to the Middle East. As the world’s biggest crude exporter and OPEC’s leader, Saudi Arabia has been spearheading a cut in oil production to stop barrels from building up in storage and further pressuring prices.

Global oil markets have “sufficient” supply, Al-Murshed said. Spare crude production capacity is at about 3% of global demand, he added.

Separately, Al-Murshed declined to comment on the potential sale of Aramco shares by the Saudi government.