• 4 minutes Energy Armageddon
  • 6 minutes How Far Have We Really Gotten With Alternative Energy
  • 10 minutes Wind droughts
  • 32 mins GREEN NEW DEAL = BLIZZARD OF LIES
  • 6 hours "Biden Is Running U.S. Energy Security Into The Ground" by Irina Slav
  • 21 hours "Natural Gas Price Fundamental Daily Forecast – Grinding Toward Summer Highs Despite Huge Short Interest" by James Hyerczyk & REUTERS on NatGas
  • 2 days "How to Calculate Your Individual ESG Score to ensure that your Digital ID 'benefits' and money are accessible"
  • 21 hours Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 11 days "Forget Oil, The Real Crisis Is Diesel Inventories: The US Has Just 25 Days Left" by Zero Hedge - 5 Stars *****
  • 4 days The Federal Reserve and Money...Aspects which are not widely known
  • 3 days "Europe’s Energy Crisis Has Ended Its Era Of Abundance" by Irina Slav
  • 9 days Is Europe heading for winter of discontent with extensive gas shortages?
  • 5 days "Dodgy Demand Data? The Oil Price Collapse Conspiracy" by Alex Kimani
  • 12 days "The Global Digital ID Prison" by James Corbett of CorbettReport.com
  • 13 days Goldman Betting on Cryptocurrencies
  • 16 days Сryptocurrency predictions
China's Extraordinary Covid Protests

China's Extraordinary Covid Protests

Extraordinary protests across China appear…

U.S. Shale Growth To Disappoint In 2023

U.S. Shale Growth To Disappoint In 2023

Although shale output is growing…

Tsvetana Paraskova

Tsvetana Paraskova

Tsvetana is a writer for Oilprice.com with over a decade of experience writing for news outlets such as iNVEZZ and SeeNews. 

More Info

Premium Content

Saudi Aramco Plans Multi-Billion-Dollar Bond Issue

Saudi Arabia’s oil giant Aramco plans to issue U.S.-denominated bonds, with the exact amount subject to market conditions, the world’s largest oil-producing company said on Monday, as it has doubled down on paying huge dividends amid profit slumps.

Citi, Goldman Sachs International, HSBC, J.P. Morgan, Morgan Stanley, and NCB Capital will be underwriters of the upcoming bond issue, which will be in several tranches with a maturity of 3, 5, 10, 30 and/or 50 years, subject to market conditions, Aramco said in a filing with the Saudi stock exchange Tadawul.

The total U.S. dollar amount of the bonds, the par value, the price, and the return will be subject to market conditions, the Saudi oil giant said.

Aramco is back on the international bond market after the oil price crash.

Last year, Aramco issued US$12 billion bonds in several tranches in its first international bond issuance, for which it had received more than US$100 billion in orders.

The collapse in oil prices—which Saudi Arabia helped to create by flooding the market with oil in April—led to significant annual declines in Aramco’s quarterly profits this year.

While profits have slumped, Aramco’s debt has grown after the US$69-billion acquisition of SABIC. At the same time, the world’s biggest oil firm continues to pledge to pay out annual dividends of US$75 billion to shareholders, the Kingdom being the largest of them with more than 98 percent.

The massive dividend of Aramco cannot fund the widening budget gap of Saudi Arabia if oil prices remain low beyond 2021, Moody’s said last month.

The Saudi budget depends to a large extent on the royalties, taxes, and of course, the dividend from Saudi Aramco.

The company has an “ambitious” dividend target, which could result in Aramco’s post-dividend free cash flow (FCF) turning negative in 2020 and 2021 before broadly breaking even in 2022-2023, Fitch Ratings said last week as it revised its outlook to negative from stable after a similar revision for the sovereign.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News