Thursday 18 July 2019

Aramco's bond debut ‘intended to inspire confidence’

LONDON, April 9, 2019

Saudi Aramco does not need to resort to debt offering and that the bond serves a secondary purpose to inspire confidence and offer new transparency into Aramco’s finances, as the company fires up its global expansion strategy, said an industry expert.

“Beyond the stated goal of acquiring SABIC, Aramco is pursuing multiple gas, midstream and downstream opportunities worldwide, one of which is a large stake in a new Russian integrated LNG project Arctic LNG-2,” added Anna Belova, senior oil and gas analyst at GlobalData, a leading data and analytics company.

“Following Aramco’s prospectus release, details began to emerge that the company’s share in Arctic LNG-2 will exceed 30 per cent.

“With similar timing, the government of Turkmenistan highlighted that Aramco could participate in the giant TAPI pipeline, connecting Turkmen fields to India’s markets. Russian and Turkmen governments might be the first interests swayed by the bond details, but will not be the last,” she added. – TradeArabia News Service


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