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. Gulf issuers have shown no sign of slowing this year's blitz of issues on international debt markets as they work to plug finances hit by weaker oil prices and the coronavirus crisis. "The backdrop is supportive," said a debt banker on the deal, citing a $1 billion Islamic bond issuance last week from Dubai Islamic Bank, which achieved record low yields. A bond prospectus, seen by Reuters, detailed risks for investors, including the COVID-19 virus and the Saudi government's decisions on oil production and spare capacity. "Saudi Aramco's costs of complying with such decisions, may not maximise returns for Saudi Aramco," the prospectus said, citing possible restrictions on its oil output.

Source: Mint November 16, 2020 10:18 UTC