Saudi Aramco Commences Issuance of USD-Denominated Sukuk to Raise Funds for Corporate Purposes 

Saudi Arabian Oil Company (Saudi Aramco) announced the launch of US Dollar-denominated international Sukuk under its Trust Certificate Issuance Programme (the Programme) on the 7th of June 2021, according to media reports. The Programme will continue through the 17th of June 2021.

Why it Matters?

In a statement to Tadawul, Saudi Aramco stated that the funds would go towards general corporate purposes, and is likely to enable the company to fulfil its USD 75 billion payment in dividends that was pledged to gather support at the time of its Initial Public Offering (IPO). The impact of COVID-19 and the decline in oil prices in 2020 compelled Saudi Aramco to lower its spending, cut jobs and dispose of non-core assets. Although oil prices have since grown...