Saudi Aramco Readies Another Debt Offering, First International Since April 2019

Posted on 11/16/2020


Oil giant Saudi Aramco seeks to arrange its first international bond offering since April 2019. Saudi Aramco is keen on funding its US$ 75 billion dividend commitment. Most of the dividend goes to the Saudi government, which is a key input on lessening fiscal government stresses.

Saudi Aramco hired some banks including Goldman Sachs for the bond sale that will be in U.S. dollars with tranches maturing in three, five, 10, 30, and 50 years. The number of tranches and length could be curbed dependent on factors such as investor appetite.

Recently, Saudi Aramco reported a 44.6% drop in third quarter net profit as demand weighed on crude oil prices. However, Aramco had free cash flow of US$ 12.4 billion in the third quarter 2020, compared with US$ 6.1 billion in the second quarter 2020.

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