Aramco turns to bonds to help fund $75bn dividend

SourceGulf Business
SectorFinancial Markets
CountrySaudi Arabia

Saudi Aramco, the world’s biggest oil company, is set to return to the bond markets for the first time since April of last year as it seeks to fund a $75bn dividend commitment. Aramco, which hired banks including Goldman Sachs Group for the sale, needs to raise debt after slumping crude prices caused profit to fall by 45 per cent in the third quarter.

That’s left it unable to generate enough cash to fund the investor payouts, almost all of which go to the Saudi government, which needs the money to plug a widening budget deficit. The company could raise about $6bn, according to two people familiar with the deal. Aramco media officials didn’t immediately respond to requests for comment. Aramco has slashed spending, cut jobs, and is considering selling some assets. ...read more...