DUBAI: Saudi Aramco said on Monday it had hired banks for a multi-tranche U.S. dollar-denominated bond issuance, as the world's largest oil company seeks cash amid lower oil prices.
Other banks involved in the deal include BNP Paribas, BOC International, BofA Securities, Credit Agricole, First Abu Dhabi Bank, Mizuho, MUFG, SMBC Nikko and Societe Generale, a document issued by one of the banks on the deal showed. Aramco needs cash to pay US$37.5 billion in dividends for the second half of 2020 and to fund its US$69.1 billion acquisition of 70per cent of Saudi Basic Industries , paid by installments until 2028. It raised a US$10 billion loan this year."In a world searching for yield there should be no shortage of demand. But persistent low oil prices and the threat that poses to long-term cash generation should be reflected in pricing," said Hasnain Malik, head of equity strategy at Tellimer.
Aramco's outstanding U.S. dollar-denominated bonds due in 2029 were trading at 2.05per cent on Monday, a slightly higher yield than Saudi government paper with a similar maturity, Refinitiv data showed.
Ireland Ireland Latest News, Ireland Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Source: ChannelNewsAsia - 🏆 6. / 66 Read more »