DUBAI: Saudi Aramco is looking to raise at least $17 billion from the sale of a significant minority stake in its gas pipelines, higher than the $12.4 billion raised from its oil pipeline deal, Reuters reported on Monday quoting unnamed sources.
Potential bidders including North American private equity and infrastructure funds, as well as state-backed funds in China and South Korea have been approached by Aramco through its advisers before a formal sale process kicks off in the next few weeks, Reuters said.
The deal size may include $3.5 billion of equity and the remainder will be funded by bank debt, one of the anonymous sources said, while another source said the transaction size could top $20 billion.
“The gas deal is about the long-term view of gas utilization and consumption in Saudi Arabia,” said one source familiar with the deal, explaining why the gas deal may generate higher proceeds.
According to Reuters, the companies tapped include the ones who took part in the stake sale process for Abu Dhabi National Oil Co.’s gas pipelines, which was bought by a consortium of investors including Global Infrastructure Partners (GIP), Brookfield, Singapore sovereign wealth fund GIC and European gas infrastructure owner and operator SNAM.
Aramco did not immediately respond to a Reuters request for comment, while JPMorgan and Goldman declined to comment. Brookfield and SNAM declined to comment. GIP did not immediately respond to a request for comment.
Aramco, similar to Abu Dhabi National Oil Co. (ADNOC), used a lease and lease-back agreement to sell a 49 percent stake of newly formed Aramco Oil Pipelines Co. to the buyer and rights to 25 years of tariff payments for oil carried on its pipelines.
Saudi Aramco seeks to raise at least $17 billion from gas pipeline: Reuters
https://arab.news/6gmpa
Saudi Aramco seeks to raise at least $17 billion from gas pipeline: Reuters
- Potential bidders have been approached by Aramco through its advisers before a formal sale process kicks off in the next few weeks
Stc Group issues US dollar-denominated sukuk with a total value of $2bn
RIYADH: Stc Group has issued US dollar-denominated sukuk with a total value of $2 billion across two tranches.
The group clarified that the issuance included the offering of $750 million in sukuk with a 5-year maturity at a yield of US Treasury plus 75 basis points, and an issuance of $1.250 billion with a 10-year maturity at a yield of UST plus 90 basis points, according to the Saudi Press Agency.
It noted that the total order book exceeded $8 billion across both tranches, with a coverage rate exceeding 4 times, and participation from over 300 investors in the subscription.
The issuance garnered strong demand from a broad and diverse base of international investors, reflecting solid confidence in the robustness and efficiency of stc Group’s business model and strategy.
This strategy is aimed at strengthening its digital leadership, seizing infrastructure opportunities, enabling massive projects, and contributing to the realization of Vision 2030 objectives, with a focus on achieving sustainable growth based on operational efficiency and maximizing shareholder value.
This issuance enhances stc Group’s access to international capital markets and solidifies investor confidence in the strength of its credit position.
It also supports its strategic role in accelerating the pace of digital transformation in the Kingdom and building a thriving digital economy.
