The largest energy company in the world Saudi Aramco has appointed global banks to ask the first dollar-denominated Islamic instruments.
According to Arab Net, the Saudi oil giant may offer three segments of the instruments due to three, five and 10 years, according to Bloomberg on a source familiar with the matter.
Aramco is collecting liquidity to finance its commitment to pay $ 75 billion from dividends, a pledge 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 the prices of crude oil and gas, the free cash flow fell to less than $ 18.75 billion necessary to pay the earnings of the period, by Bloomberg.
The plan was planned for him 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.
Aramco appointed more than 10 banks from all over the world to organize sukuk as of Monday, according to Bloomberg.
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.
Moody's classification
Moody's released Monday classification of Aramco's new credit certification program at Class P (A1), with a negative future look.
The agency said other Aramco classifications were not changed, including long-term source classification in the A1 category and classify the long-term exporter in the AAA.sa, and the classification of the global bond program (GMTN) in the category (P) (A1) and categories versions of basic bonds are not supported in category A1.
