Saudi Aramco hires banks for debut dollar sukuk - report

Oil major to offer three tranches of notes

  
Investors monitor a screen displaying stock information at the Saudi Stock Exchange (Tadawul) following the debut of Saudi Aramco's initial public offering (IPO) on the Riyadh's stock market, in Riyadh, Saudi Arabia, December 11, 2019.

Investors monitor a screen displaying stock information at the Saudi Stock Exchange (Tadawul) following the debut of Saudi Aramco's initial public offering (IPO) on the Riyadh's stock market, in Riyadh, Saudi Arabia, December 11, 2019.

REUTERS/Ahmed Yosri

State-run oil producer Saudi Aramco has hired banks for its first ever dollar-denominated Islamic bonds, according to a Bloomberg report on Monday.

The biggest oil company in the world may offer three tranches of notes, the report said citing a person familiar with the matter.

The firm is raising cash to help fund its commitment to pay out $75 billion in dividends, the report added.

In the first quarter, Aramco saw its net profit jump by 30 percent to $21.7 billion as oil prices recovered and managed to maintain its dividend payout.

In April, Saudi crown prince Mohammed bin Salman said the kingdom is considering to divest one percent of its stake in Aramco to a company outside the kingdom.

(Writing by Brinda Darasha; editing by Daniel Luiz)

brinda.darasha@refinitiv.com 

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