Saudi Aramco on Thursday said it raised $6 billion from its first dollar-denominated Islamic bond sale, as the energy giant seeks capital to fund its hefty dividend payments.

The three-tranche sukuk, or Islamic bonds compliant with the Muslim faith, are due in three, five and 10 years, the company said in a statement.

Aramco "successfully raised $6 billion, following the sale of US dollar-denominated sharia-compliant securities to leading institutional investors", the statement said.

The sale comes after two previous bond offerings that were not compliant with Islamic law,&nbsp;a debut $12 billion sale in 2019 and an $8 billion offering in November last year.

The company is raising money to help pay an annual dividend of $75 billion, a key revenue source for the Saudi government, Aramco's biggest shareholder.

Aramco, the kingdom's cash cow, pledged to pay the dividend when it sought to generate interest in its debut initial public offering on the Saudi bourse in December 2019.

But company finances came under pressure last year, when crude prices tanked as the coronavirus pandemic sapped global demand.

Last month, Aramco declared a 30 percent jump in first quarter profit, thanks to a recovery in oil prices, but the company's free cash flow fell short of the $18.75 billion dividend obligation for that period.

Aramco is pushing to raise cash as Riyadh faces a ballooning budget deficit and pursues multi-billion dollar projects to diversify its oil-reliant economy.

In April, Aramco said it had struck a $12.4-billion deal to sell a minority stake&nbsp;in a newly formed oil pipeline business to a consortium led by US-based EIG Global Energy Partners.

Saudi Aramco on Thursday said it raised $6 billion from its first dollar-denominated Islamic bond sale, as the energy giant seeks capital to fund its hefty dividend payments.

Saudi Aramco on Thursday said it raised $6 billion from its first dollar-denominated Islamic bond sale, as the energy giant seeks capital to fund its hefty dividend payments. The three-tranche sukuk, or Islamic bonds compliant with the Muslim faith, are due in three, five and 10 years, the company said in a statement. Aramco "successfully raised $6 billion, following the sale of US dollar-denominated sharia-compliant securities to leading institutional investors", the statement said. The sale comes after two previous bond offerings that were not compliant with Islamic law, a debut $12 billion sale in 2019 and an $8 billion offering in November last year. The company is raising money to help pay an annual dividend of $75 billion, a key revenue source for the Saudi government, Aramco's biggest shareholder. Aramco, the kingdom's cash cow, pledged to pay the dividend when it sought to generate interest in its debut initial public offering on the Saudi bourse in December 2019. But company finances came under pressure last year, when crude prices tanked as the coronavirus pandemic sapped global demand. Last month, Aramco declared a 30 percent jump in first quarter profit, thanks to a recovery in oil prices, but the company's free cash flow fell short of the $18.75 billion dividend obligation for that period. Aramco is pushing to raise cash as Riyadh faces a ballooning budget deficit and pursues multi-billion dollar projects to diversify its oil-reliant economy. In April, Aramco said it had struck a $12.4-billion deal to sell a minority stake in a newly formed oil pipeline business to a consortium led by US-based EIG Global Energy Partners.

Saudi Aramco raises $6 billion from its first dollar-denominated Islamic bond sale

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Saudi Aramco raises $6 billion from its first dollar-denominated Islamic bond sale