RIYADH: Energy giant Saudi Aramco has started issuing US dollar-denominated international bonds under its Global Medium Term Note Program. In a statement on Tadawul, Aramco disclosed 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 July 9 and is set to conclude on July 17. This marks the state oil firm’s return to the debt market after a three-year hiatus. The last time it tapped the global debt markets was in 2021, raising $6 billion from a three-tranche sukuk, or Islamic bond. In February, it indicated plans to issue another bond this year. Gulf companies and governments have been eager to leverage debt markets this year amidst declining global interest rates. In January, the Kingdom issued $12 billion in dollar-denominated bonds as part of this trend. Aramco stated in its Tadawul release that its US dollar-denominated bonds are direct, general, unconditional, and unsecured obligations of the company. These bonds are aimed at institutional investors, specifically qualified investors in jurisdictions where the offering complies with local regulations. The issuance is managed by Citi, Goldman Sachs International, and HSBC. JP Morgan, Morgan Stanley, and SNB Capital are also participating as active joint bookrunners. Additional joint bookrunners include Abu Dhabi Commercial Bank, anb capital, and Bank of China, alongside BofA Securities, BSF Capital, and Emirates NBD Capital Limited. It also includes First Abu Dhabi Bank, GIB Capital, and Mizuho, along with MUFG, Natixis, Riyad Capital, SMBC Nikko, and Standard Chartered Bank. Aramco disclosed various 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. Additionally, they encompass investor put and change of control put, all subject to prevailing market conditions. In February, Ziad Al-Murshed, executive director of new business development at Saudi Aramco, emphasized prioritizing long-term goals and plans over short-term ones, hinting at a forthcoming timeframe. He mentioned that Saudi Aramco could potentially issue longer-term bonds up to 50 years and might offer these financial instruments in 2024 as market conditions improve. “We’re always prioritizing longer term over short term. The timeframe I don’t want to give you exactly but it’s not very far away. Likely in 2024,” Al-Murshed said. The sale of over $10 billion worth of shares by Aramco last month marked the second public offering from the Saudi-based firm. The 1.55 billion shares on offer represented 0.64 percent of the company’s issued shares. In a Tadawul statement, the oil firm disclosed at that time that the price range was set between SR26.70 and SR29 ($7 to $7.70) per share. Globally, Saudi Arabia has emerged as the leading issuer of international bonds amongst emerging markets, surpassing China with $33.2 billion in bond sales to date, as reported by Bloomberg last month. This marked the first time in 12 years that China was displaced from the top spot, driven by an 8 percent growth in Saudi Arabia’s bond sales this year, according to the agency. The Kingdom’s record pace of borrowing is driven by increasing support from global debt investors for the nation’s 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.