Aramco, the giant Saudi state-owned oil company, plans to raise $3 billion through an international bond sale, marking its second such initiative in two months. The deal is part of a series of debt issues by the kingdom, which already saw Aramco issue $6 billion in bonds in July, its first since 2021.

The fall in oil prices, with Brent crude at around $75 a barrel, and the reduction in production as a result of OPEC+ policy have weighed on Aramco's profits. At the same time, the company has maintained a generous dividend programme. However, Aramco's free cash flow is only $19 billion, so the company will probably have to borrow to finance these dividends.

The phenomenon of bond issuance is not limited to Aramco. The IMF, ADNOC and the Sovereign Investment Fund (PIF) are also active. These initiatives are partly motivated by the need to finance the Vision 2030 agenda, which aims to diversify the Saudi economy away from oil, in a context where the country anticipates budget deficits for at least another three years.

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