Summary List Placement
Saudi Aramco, the world’s largest oil company, plans to issue an international bond, as it works to shore up its finances in light of the collapse in demand for crude oil this year.
In a filing with the Riyadh stock exchange on Monday, Aramco said it would issue dollar-denominated bonds of varying maturities – 3-, 5-, 10-, 30- and possibly 50-years – but did not specify how large the sale would be.
“The bonds will be senior, dollar denominated, unsecured by assets,” Aramco said in a filing.
Citi, Goldman Sachs International, HSBC, JP Morgan, Morgan Stanley and NCB Capital have been appointed as underwriters for the sale, the filing showed.
Aramco, which reported a near-45% drop in net profit in the third quarter just two weeks ago, has struggled to shore up its balance sheet this year, much like its rivals, as the COVID-19 pandemic has destroyed energy demand and kept crude prices below $40 a barrel for much of the past six months.
The company also committed to paying a dividend of $18.75 for the third quarter.
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Source:: Businessinsider – Finance