Executives from Saudi Aramco have indicated the company’s readiness to issue extended-term bonds, potentially with maturities of up to 50 years, eyeing a 2024 launch when market conditions are favorable. Ziad Al-Murshed, who oversees new business development at the oil giant, highlighted the company’s preference for long-term strategies during the third Saudi Capital Market Forum.
Al-Murshed emphasized the goal of smoothing out the company’s debt maturity profile by focusing on mid to long-term bonds. He also shed light on the firm’s dividend outlook, noting a commitment to sustainable growth, as evidenced by a recent 4 percent hike in dividends from $75 billion to $78 billion.
We’ll decide on this year’s base dividend after board discussions. Our consistent delivery, even during the pandemic, offers investors comfort. Last year, we increased dividends to $78 billion,
Al-Murshed commented, adding that a performance-linked dividend component has been introduced, with the combined performance of 2022 and 2023 leading to additional payouts in the following quarters of 2023.
The assessment of the 2022-2023 performance has been completed, with announcements expected in early March. The performance-linked dividends will be distributed throughout 2024, aligning with the company’s strategy to not sell bonds to support dividend payments.
At the same forum, Manar Al-Moneef, chief investment officer at NEOM, discussed the substantial demand her company is set to generate for various industries, projecting the movement of 375 million tonnes of earthwork by 2030 and 2.2 billion tonnes by 2055. She highlighted NEOM’s strategic focus on fostering new, profitable industries in Saudi Arabia through foreign investment, job creation, cost reduction, and innovation.
Al-Moneef also pointed out NEOM’s commitment to renewable energy and sustainable practices, including desalination processes with zero liquid discharge and the development of ESG standards.
Gautam Sashital, CEO of King Abdullah Financial District, concluded the session by emphasizing the district’s role in enhancing quality of life through sustainability, smart technology, and accessibility, contributing to Saudi Arabia’s transformation and non-oil sector growth.