Saudi Aramco, the world’s biggest energy company, is selling $6 billion of bonds in its first dollar-denominated Islamic bond sale, APA reports citing Bloomberg.
The state-controlled company is offering sukuk due in three, five and 10 years, and the longest portion will yield 120 basis points above Treasuries, according to a person familiar with the matter. That’s down from initial discussions of around 160 basis points.
Order books for the sale are in excess of $60 billion, said people familiar with the transaction, who asked not to be identified as the details are private.
The firm is raising cash to help finance its plans to pay out $75 billion in dividends, a commitment that the oil company made to garner support for its initial public offering. Aramco had to reduce spending, cut jobs and sell non-core assets as the spread of the coronavirus and widespread lockdowns curbed demand for oil last year, the main source of revenue for Saudi Arabia.