Aramco starts debut sale of dollar-denominated Islamic bonds

SourceArabian Business
SectorFinancial Markets
CountrySaudi Arabia

State-controlled oil giant is raising cash to help finance its plans to pay out $75bn in dividends

Saudi Aramco, the world’s biggest energy company, started marketing its first dollar-denominated Islamic bond sale.

The state-controlled company is offering sukuk due in three, five and 10 years, according to a person familiar with the matter, who asked not to be identified as the details are private.

The firm is raising cash to help finance its plans to pay out $75 billion in dividends, a commitment that the oil company made to garner support for its initial public offering.

The crown prince is increasingly leaning on Aramco, the world’s biggest oil company, to help finance his plan to transform and diversify the Saudi economy

Aramco had to reduce spending, cut jobs and sell non-core assets as the spread of the coronavirus and widespread lockdowns curbed demand for oil last year, the main source of revenue for Saudi Arabia.

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