Page 13 - DMEA Week 23 2021

DMEA NEWS IN BRIEF DMEA

COMPANIES dividends, which in Moody’s view is not Referring to the end of the firefighting
sustainable should oil prices fall and remain operation on Thursday evening, he said:
Aramco raises $6bn with significantly below $60/bbl,” Fitch said. “Thanks to God and the tireless and selfless
“Interlinkages between Saudi Arabia and
efforts of the rescue and fire brigade, the fire
debut sukuk the company imply that any change in rating was extinguished in less than 26 hours and
production resumed hours ago.”
outlook on the government of Saudi Arabia
Saudi Arabian oil giant Aramco (2222.SE) would be mirrored on Saudi Aramco’s rating The CEO of Tehran Oil Refinery
locked in another $6 billion on Wednesday to outlook.” emphasized: “At present, there are no
help fund a large dividend as it returned to the The company chose to issue Islamic bonds problems in the production process of this
international debt markets with its first U.S. over conventional ones due to high demand refinery.”
dollar-denominated sukuk sale, a document for the instrument as a result of the low The massive fire was extinguished on
showed. number of dollar sukuk sales in the Gulf this Thursday. It broke out at the refinery on
The debt issuance, which will help fund a year, a source told Reuters on Monday. Wednesday and sent a huge plume of black
$75 billion dividend commitment that will Aramco has been widely expected to smoke into the sky over Tehran.
mostly go to the government, comprises become a regular bond issuer after its debut SHANA
tranches of three, five and 10 years, a $12 billion issuance in 2019 was followed
document from one of the banks arranging by an $8 billion, five-part transaction in Further calls to shut down
the deal and seen by Reuters showed. November last year, also used to fund its
Aramco sold $1 billion in the three-year dividend. Haifa refineries
tranche at 65 basis points (bps) over U.S. A source had told Reuters that Aramco was
Treasuries (UST), $2 billion in the five-year expected to raise up to $5 billion with the deal, A top-level committee of officials set up
portion at 85 bps over UST and $3 billion in which had 29 active and passive bookrunners within the Prime Minister’s Office presented
10-year paper at 120 bps over UST. working on it. read more its final recommendations Monday on the
Initial price guidance was around 105 bps Active bookrunners on the deal included future of Haifa Bay in northern Israel, with a
over UST for the three-year bonds, around Citi, HSBC, JPMorgan, NCB Capital call to halt all petrochemical activity within
125 bps over UST for the five-year notes and and Standard Chartered Bank. Passive a decade, at most, to allow for the creation of
around 160 bps over UST for the 10-year bookrunners included BOC International and new housing, eco-friendly jobs and a park.
tranche. Dubai Islamic Bank The timetable is conditioned upon
The spreads were tightened after the deal REUTERS “maintaining the minimal needs of the energy
attracted combined orders of more than $60 industry.”
billion. Environmental Protection Minister Gila
Aramco last year maintained its promised REFINING Gamliel, who has pushed hard to shut the
$75 billion annual dividend to shareholders polluting industries down, welcomed the
despite lower oil prices, and is expected to Production resumes at report, saying that Haifa residents deserved a
shoulder significant domestic investments “green and innovative bay.”
in Saudi Arabia’s plans to transform the Tehran Oil Refinery But in a sign of the difficulties likely to
economy. read more lie ahead, the Finance Ministry expressed
Fitch assigned Aramco’s sukuk issuance The CEO of Tehran Oil Refining Company its reservations in a report while the Energy
programme an A1 rating with a negative announced the resumption of operations Ministry sided with the Bazan petrochemical
outlook, in line with the negative outlook on at the refinery. According to the public complex, owned by the Ofer family’s Israel
existing Aramco ratings and tracking a change relations office of the Tehran refinery, Hamed Corporation. Both attacked the committee for
in Saudi Arabia’s sovereign outlook to negative Armanfar announced: “Due to the complete what they said was unprofessional work.
in May last year. and successful extinguishing of the fire by the The committee was established as part
“The company has displayed a strong rescue operations teams, production in the of Government Resolution 472 on October
commitment to pay $75 billion in annual Tehran refinery has resumed.” 25, 2020. Headed by Avi Simhon, leader of

Week 23 10•June•2021 www. NEWSBASE .com P13