Aramco starts issuing US dollar-denominated bonds
9 July 2024
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Saudi Aramco has started issuing US dollar-denominated international bonds under its global medium-term note programme.
In a filing with the Saudi Stock Exchange (Tadawul) on 9 July, Aramco announced that the bonds have a minimum subscription of $200,000, with the offering price and value determined based on market conditions.
The offering began on 9 July and is set to conclude on 17 July.
The new bond issuance exercise marks the Saudi energy giant’s return to the debt market after a three-year gap. The last time Aramco tapped the global debt markets was in 2021, raising $6bn from a three-tranche sukuk (Islamic bond).
Aramco stated in its Tadawul filing that its US dollar-denominated bonds are direct, general, unconditional and unsecured obligations of the company.
These bonds target institutional investors, specifically qualified investors in jurisdictions where the offering complies with local regulations.
Citi, Goldman Sachs International and HSBC are managing the bond issuance. JP Morgan, Morgan Stanley and SNB Capital are also participating as active joint bookrunners.
Additional joint bookrunners for the exercise are Abu Dhabi Commercial Bank, ANB Capital, Bank of China, BofA Securities, BSF Capital, Emirates NBD Capital, First Abu Dhabi Bank, GIB Capital, Mizuho, MUFG, Natixis, Riyad Capital, SMBC Nikko and Standard Chartered Bank.
Aramco disclosed several redemption options for the bonds, such as redemption at maturity, upon an event of default or for tax reasons. These options include the issuer’s call, maturity par call and make-whole call. In addition, they encompass investor put and change of control put, all subject to prevailing market conditions.
ALSO READ: Riyadh raises $11.23bn from Aramco secondary share sale
In February, the state enterprise indicated plans to issue another bond this year.
Ziad Al-Murshed, executive director of new business development at Aramco, spoke about prioritising long-term goals and plans over short-term ones, hinting at a forthcoming timeframe.
He said that the company could issue longer-term bonds of up to 50 years and might offer these financial instruments in 2024 as market conditions improve.
Globally, Saudi Arabia has emerged as the leading issuer of international bonds among emerging markets, surpassing China with $33.2bn in bond sales to date, as reported by Bloomberg in June.
This marked the first time in 12 years that China was displaced from the top spot, driven by an 8% growth in Saudi Arabia’s bond sales this year, according to Bloomberg.
The kingdom’s pace of borrowing is driven by increasing support from global debt investors for its Vision 2030 plan, which aims to diversify the Saudi economy away from oil dependence and transform the country into a global business hub by the end of the decade.
ALSO READ: Riyadh’s desire for Aramco foreign listing may be waning
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13 November 2024
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Chinese-led consortium wins $262m Algeria rail deal
13 November 2024
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Algeria’s Anesrif has awarded a $262m construction contract to a consortium led by the China Road & Bridge Corporation (CRBC).
The CRBC-led consortium includes China Civil Engineering Construction Corporation and Algeria’s EPE SNTP.
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This contract is the latest example of Chinese companies undertaking major projects in Algeria.
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Hatta hydropower plant heads for trial operation
13 November 2024
Construction work on Dubai’s Hatta pumped-storage hydroelectric power plant is 94.15% complete, and generator installations are under way in preparation for a trial operation in the first quarter of 2025.
According to the state utility, Dubai Electricity & Water Authority (Dewa), the plant’s upper dam, which includes a 72-metre-high main wall and a 37-metre-high side dam, has also been filled.
The plant will have a production capacity of 250MW, a storage capacity of 1,500 megawatt-hours and a lifespan of up to 80 years.
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It uses the potential energy of water stored in the upper dam, converting it into kinetic energy as the water flows through a 1.2-kilometre subterranean tunnel.
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To store energy, clean power generated at the Mohammed Bin Rashid Al-Maktoum Solar Park will be used to pump water back to the upper dam, converting electrical power into kinetic energy during the process.
Dewa said the project is part of a comprehensive vision to develop Hatta and enhance its sustainable development, including the creation of job opportunities for Emiratis.
It added that the project “also supports the Dubai Clean Energy Strategy and the Dubai Net Zero Carbon Emissions Strategy 2050”.
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Bahrain invites independent water prequalifications
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Bahrain’s Electricity & Water Authority (EWA) has invited interested firms to prequalify for a tender to develop the state’s first independent water project (IWP).
The Al-Hidd seawater reverse osmosis (SWRO) plant is expected to have a production capacity of about 60 million imperial gallons a day (MIGD) of potable water.
The client expects firms to submit their statements of qualifications (SOQs) by 18 December.
The facility will be developed on a brownfield site and is expected to be fully operational by the second quarter of 2028. It will help expand Bahrain’s water infrastructure to meet projected demand based on its 2030 master plan.
The Al-Hidd IWP will be developed using a build, own and operate (BOO) model for 20 to 25 years.
EWA has also issued the prequalification request for another BOO project, MEED reported on 11 November.
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Neom replaces CEO
12 November 2024
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Nadhmi Al-Nasr has left his role as Neom CEO and will be replaced by Aiman Al-Mudaifer as acting CEO of the company developing the $500bn project in northwestern Saudi Arabia, which includes The Line, Trojena and Oxagon.
In a statement published online, Neom said: “The Neom Board of Directors today announced the appointment of Eng. Aiman Al-Mudaifer as acting CEO of the company. Eng. Al-Mudaifer assumes leadership of Neom, following Nadhmi Al-Nasr’s departure.”
The statement added: “As Neom enters a new phase of delivery, this new leadership will ensure operational continuity, agility and efficiency to match the overall vision and objectives of the project.”
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Neom has attracted significant criticism over the past year as it grapples with major programmes of construction work such as The Line. In a statement announcing the appointment of consultants for work on The Line on 11 November, Neom said it “is currently focused on the initial phases of infrastructure and enabling works for the new city”.
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