DUBAI: Saudi Aramco has published a new prospectus for its issuance programme of Islamic bonds or sukuk, signalling the state oil major may soon tap the debt markets again after it raised $5 billion from a three-part bond sale this week.
The prospectus, submitted to the London Stock Exchange where the sukuk would be listed, is dated May 30. Aramco has a year to issue sukuk under its terms.
Aramco earlier this week raised $5 billion from a sale of conventional bonds. The borrowing comes after economic uncertainty and rising supply hit crude markets, denting the top oil exporter’s profits.
Saudi Aramco seeks funds through three-part bond sale
Aramco in March said it expected to slash its dividend this year by nearly a third as profits and free cash flow decline.
The Saudi government is heavily reliant on generous payouts from its longtime cash cow Aramco, which also include royalties and taxes. Oil receipts made up 62% of state revenue last year.
The government does not disclose at which crude price its books are balanced. The IMF estimates it needs oil at over $90 a barrel for a balanced budget. Brent crude was trading around $64.4 on Friday.
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