RIYADH: Saudi Aramco’s crucial bond issue, set to close on Wednesday, has already attracted higher-than-expected interest from international investors, the Kingdom’s energy minister, Khalid Al-Falih, has revealed.
Speaking on Monday at the inaugural Saudi Energy Forum in Riyadh, organized by information consultancy Gulf Intelligence, Al-Falih said that the issue attracted demand “north of $30 billion.”
The minister, however, declined to give details of the final amount to be raised or the pricing.
“It is at a very critical stage, but according to all the press reports and the analysts, investors have been extremely impressed,” Al-Falih said.
Aramco’s first foray into international debt markets had previously been expected to raise around $10 billion, to be put toward the cost of acquiring the Saudi industrial conglomerate SABIC, valued at nearly $70 billion. But increased global investor appetite for the issue would reassure Aramco and the Kingdom that its appeal in international markets remained as strong as ever.
It would also encourage Aramco to go back to the bond markets at a later date. Al-Falih said that Aramco was “seeking a permanent presence in capital markets.”
In a wide-ranging interview with Bloomberg TV, broadcast live at the forum, Al-Falih spoke of the changes taking place in the economy of Saudi Arabia as a result of the Vision 2030 reform plan, the acquisition of SABIC, and future investment policy in the Kingdom.
“It is a phenomenal transformation, and SABIC is the ideal way to do it. Just a short while ago our acquisition of SABIC would have been unthinkable, because it was seen as a national champion,” he said.
Asked whether the proceeds of the SABIC transaction would “re-energize” the investment strategy of the Saudi Public Investment Fund (the vendor of SABIC’s shares and on whose board Al-Falih sits), he said: “The vision of PIF goes way beyond $69 billion from Aramco.”
He hinted that PIF might divest other “non-strategic assets” in the future to focus on its hi-tech international stakes such as Uber,
Lucent and Tesla. “As bold as they were in entering these assets, they may also be bold to exit others.”
Al-Falih later said that the electric vehicles industry needed to be a significant element of the recently announced National Industrial Development and Logistics Plan.
With regard to the oil market, Al-Falih said that the forthcoming meeting of the Joint Ministerial and Monitoring Committee (the framework for OPEC co-operation with non-OPEC producers) would be a “key decision point” on whether or not to implement further cuts in oil output.
“I don’t think we will need (to do more) ... the market is on its way toward balance. We have done a lot more than others,” he said, referring to speculation that some producers have not adhered to previously agreed levels.
The minister added that personal relations between himself and his Russian counterpart Alexander Novak were “great”, but he added: “The dynamics in Russia are different from other countries.”
Saudi Aramco bond issue attracts ‘north of $30bn’
Saudi Aramco bond issue attracts ‘north of $30bn’
- Aramco’s first foray into international debt markets had previously been expected to raise around $10 billion
- Increased global investor appetite for the issue would reassure Aramco and the Kingdom that its appeal in international markets remained as strong as ever
Acwa signs key terms to develop 5GW of renewable energy capacity in Turkiye
JEDDAH: Saudi utility giant Acwa has signed key investment agreements with Turkiye’s Ministry of Energy and Natural Resources to develop up to 5 gigawatts of renewable energy capacity, starting with 2GW of solar power across two plants in Sivas and Taseli.
Under the investment agreement, Acwa will develop, finance, and construct, as well as commission and operate both facilities, according to a press release.
The program builds on the company’s first investment in Turkiye, the 927-megawatt Kirikkale Independent Power Plant, valued at $930 million, which offsets approximately 1.8 million tonnes of carbon dioxide annually, the statement added.
A separate power purchase agreement has been concluded with Elektrik Uretim Anonim Sirketi for the sale of electricity generated by each facility.
Turkiye aims to boost solar and wind capacity to 120GW by 2035, supported by around $80 billion in investment, while recent projects have already helped prevent 12.5 million tonnes of CO2 emissions and reduced reliance on imported natural gas.
Turkiye’s energy sector has undergone a rapid transformation in recent years, with renewable power emerging as a central pillar of its strategy.
Raad Al-Saady, vice chairman and managing director of ACWA, said: “The signing of the IA (implementation agreement) and PPA key terms marks a pivotal moment in Acwa’s partnership with Turkiye, reflecting the country’s strong potential as a clean energy leader and manufacturing powerhouse.”
He added: “Building on our long-standing presence, including the 927MW Kirikkale Power Plant commissioned in 2017, this step elevates our partnership to a new level,” Al-Saady said.
In its statement, Acwa said the 5GW renewable energy program will deliver electricity at fixed prices, enhancing predictability for grid planning and supporting long-term industrial investment.
By replacing imported fossil fuels with domestically generated clean energy, the initiative is expected to reduce Turkiye’s exposure to global energy market volatility, strengthening energy security and lowering long-term power costs.
The company added that the economic impact will extend beyond the anticipated investment of up to $5 billion in foreign direct investment, with thousands of jobs expected during the construction phase and hundreds of high-skilled roles created during operations.
The energy firm concluded that its existing progress in Turkiye reflects a strong appreciation for Turkish engineering, construction, and manufacturing capacity, adding that localization has been a strategic priority, and it has already achieved 100 percent local employment at its developments in the country.
