Saudi Aramco raises US$6b in debut Islamic bond sale

RIYADH (AFP) Saudi Aramco on Thursday said it raised US$6 billion (S$8.05 billion) from its first dollar-denominated Islamic bond sale, as the energy giant seeks capital to fund its hefty dividend payments. The three-tranche sukuk, or Islamic bonds compliant with the Muslim faith, are due in three, five and 10 years, the company said in a statement. Aramco "successfully raised US$6 billion, following the sale of US dollar-denominated sharia-compliant securities to leading institutional investors", the statement said. The sale comes after two previous bond offerings that were not compliant with Islamic law - a debut US$12 billion sale in 2019 and an US$8 billion offering in November last year. The company is raising money to help pay an annual dividend of US$75 billion, a key revenue source for the Saudi government, Aramco's biggest shareholder. Aramco, the kingdom's cash cow, pledged to pay the dividend when it sought to generate interest in its debut initial public offering on the Saudi bourse in December 2019. But company finances came under pressure last year, when crude prices tanked as the coronavirus pandemic sapped global demand. Last month, Aramco declared a 30 per cent jum...