4% of the oil giant Aramco changes owners
According to Reuters , the Saudi government transferred a 4% stake in Aramco to the Kingdom's Public Investment Fund (PIF) to boost its credit rating and financial position.
The Financial Times recalls that the transfer comes a week after the Public Investment Fund received its first credit rating from Fitch and Moody's before issuing new debt to finance the Kingdom's economic diversification drive.
Fitch issued an A rating for the PIF with a stable outlook and Moody's assigned it an A1 rating before issuing a green bond and extending approximately $ 15 billion of bank debt, the FT previously reported.
The equity injection is part of efforts to increase the public investment fund's assets under management from $ 500 billion to over $ 1000 billion by the end of 2025. The transferred share is worth approximately $ 80 billion and will be the basis for improvement. the solidity of the fund. In this agreement, however, Aramco, the Saudi state oil company, is only a passive party.
"The company is not a party to the transfer and has not entered into any agreements or paid or received any proceeds from the transfer," the oil giant said.
The Public Investment Fund expects to spend more than $ 266 billion (R1 trillion) on domestic investment projects by 2025, the FT reported, which would make up a quarter of its assets under management by the same year.
Meanwhile, earlier this month, media reported that Aramco was planning to sell additional $ 50 billion worth of shares on the local Tadawul stock exchange. Aramco debuted in Tadawul in December 2019 in what has become the largest listing in history.
With this action, Prince Mohammed bin Salman rightly wants to maximize the possibility of investment of the Kingdom even in fields other than oil, making the country's enormous oil wealth as a tool to move away from the dependence on black gold and prepare for a future in which this resource will be exhausted.
Thanks to our Telegram channel you can stay updated on the publication of new articles of Economic Scenarios.
The article 4% of the oil giant Aramco changes owner comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/il-4-del-colosso-petrolifero-aramco-cambia-padrone/ on Tue, 15 Feb 2022 07:30:51 +0000.