According to Arab Aramco, Saudi Aramco has set a balanced pricing for its first versions of instruments at 105 points above US treasury bonds for the three-year treasury, and 125 basis points above the five-year treasury bonds. While the 10-year chip pricing has been set at 160 basis points above US treasury bonds.
Aramco collects liquidity to help finance its plans to pay $ 75 billion from profits, a commitment to a giant oil company to mobilize support for the initial year.
The spread of the Corona virus and large-scale closure operations led by oil last year, led to a slightly declined for a barrel in 2020, the lowest level since 1999. Since then, the price of oil increased by more than four Fold to more than $ 70 a barrel.
While Aramco's earnings rose in the first quarter of the year, thanks to the recovery in crude oil and gas, the free cash flow fell to less than $ 18.75 billion needed to pay the earnings of the period.
Oil revenue represents about 40% of Saudi Arabia's GDP, and the recent increase in crude oil prices may lead to the rise in this percentage.
This subtraction is the first since November, when Aramco collected $ 8 billion from a bond show. It was a $ 12 billion more than a few more largely, with credit standards companies in the Middle East.
The Supreme MP for Finance, Strategy and Development in Saudi Aramco, Khaled Al-Dabbagh said in May, the company is ready for all financing options, including debt, with the continuation of the Corona pandemic and under the high demand for company bonds.
He added that the financial position of the company is strong and flexible and has clear priorities for the use of cash, and has a low production cost and flexible in capital spending.
He pointed out that Aramco built positive relations with global debt markets through previous versions that have proven successfully on its coverage. The turnout was high by new investors on the company's 50 years.
