Saudi Aramco Planning Sukuk Issuance to Raise Funding for USD 75 Billion Dividend Payment 

According to media reports, Saudi Aramco is planning to re-enter the global capital markets with a Sukuk issuance of around USD 5 billion. Whilst a decision has not been reached, the funds may be raised through both USD and local currency Sukuk, with the transaction being put off if market conditions deteriorate.

Why it Matters?

The funds will go towards fulfilling a USD 75 billion dividend commitment due to the Government of Saudi Arabia. Almost all of the pay-outs made by the state-controlled firm go to the Government of Saudi Arabia, which is trying to reduce its budget deficit that widened to 12% of gross domestic product in 2020.

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