Saudi Aramco Borrows Again to Fund Dividend Pledge

Saudi Aramco Borrows Again to Fund Dividend Pledge

Saudi Aramco's return to the global debt markets this week demonstrated the oil giant's need to raise cash despite high energy prices, as it issued its inaugural dollar-denominated Islamic bond to meet a dividend pledge and complete a costly acquisition.

Saudi Arabian Oil Co., as the world's largest listed oil company is officially called, raised $6 billion in Islamic bonds, or sukuk, on Wednesday, according to people familiar with the issue. It last sold $8 billion in conventional bonds in November when oil prices were floundering due to the coronavirus pandemic.

An Aramco spokesperson said the company was raising funds for general corporate purposes.