Aramco said to plan bond sale to help fund $75bn dividend

Aramco said to plan bond sale to help fund $75bn dividend

Saudi Aramco is preparing to return to global capital markets with a bond that would help fund a $75bn dividend commitment, according to people with knowledge of the plan. The world's biggest energy company has picked around 15 banks to manage a sale of Islamic debt, or sukuk, that could happen this month, according to people with knowledge of the matter. The state-controlled firm may seek to raise around $5bn, one of the people said. Aramco is considering a sale of both dollar and local-currency sukuk, the people said. No decision has been made and the firm may put off the deal if market conditions deteriorate. Aramco declined to comment. Several other state energy companies in the Gulf are also mulling Eurobond sales. Qatar Petroleum may issue as much as $10bn in the coming weeks, while Energy Development Oman is seeking to raise around $3bn. Saudi Aramco's profit soared in the first quarter amid a recovery in global oil and gas markets, though free cash flow remained too low to fully cover its dividend for the period of $18.75bn. Almost all the firm's payouts go to the Saudi government, which is trying to narrow a budget deficit that widened to