Equity and Liabilities
Our Financing Policy aims at ensuring sufficient liquidity levels at all times while optimizing the returns to our shareholders. We use leverage prudently to fund our global growth ambitions. Our strong credit profile and corporate credit ratings (A+ / A1) on a standalone basis reflects the strength of our financing strategy and its execution. We evaluate the most optimal capital and financing structure to support our strategic plans and growth ambition.
Our primary sources of liquidity are the cash flows generated from our operations and borrowings under committed bank facilities. The primary use of this liquidity is to fund our ongoing operations and our capital expenditure requirements, including investments in joint ventures and other minority owned investee companies as well as dividend distribution to our shareholders.
Equity attributable to equity holders of the parent for 2020 reached SAR 167,626 million, a decrease of SAR 11,095 million or 6%, compared to 2019. The decrease is attributable to the dividends distributed of SAR 11,100 million during the year.
Liabilities for 2020 reached SAR 101,231 million, an increase of SAR 7,563 million or 8%, compared to 2019. Non-current liabilities increased by SAR 7,614 million mainly as a result of the increase in employee benefits by SAR 3,846 million and long-term debts by SAR 2,484 million.
Current liabilities decreased by SAR 50 million. Short-term borrowings, current portion of long-term debt and lease liabilities decreased by SAR 227 million. In addition, Zakat and Tax payable deceased by SAR 346 million. This was partially offset by an increase in trade payables and accruals and other current liabilities (net) of SAR 523 million.
During 2020, SABIC issued $1 billion (SAR 3.75 billion) in international bonds through its whollyowned subsidiary SABIC Capital I B.V. The purpose of the issuance was general purpose and to refinance some of the outstanding financial obligations of SABIC and its subsidiaries. The bonds were issued in accordance with the Rule Regulation S under the U.S. securities act of 1933, as amended. The bonds are listed on the Irish Stock Exchange (Euronext Dublin) and Taipei Exchange ("TPEx"). Below are the details:
||Issuing Amount||Total number||Per Value||Return||Maturity||Terms of Redemption|
|The notes are Senior, U.S.$ denominated and unsecured by assets||U.S. $ 1,000,000,000.00||5,000||U.S. $ 200,000.00||2.15% for Bonds maturity in 10 years and 3.00% for Bonds maturity in 30 years||10 and 30 years||Redemption on maturity and early redemption following a change of control event|
Remaining SABIC outstanding bonds as 31 December 2020:
||Issuer||Issuing Type||Par Volume||Return||Maturity||Listing|
|XS1890684688||SABIC Capital II BV||The notes are Senior, U.S.$ denominated and unsecured by assets||USD$ 1 bln||4%||2018/2023||Ireland|
|XS1890684761||SABIC Capital II BV||The notes are Senior, U.S.$ denominated and unsecured by assets||USD$ 1 bln||4.50%||2018/2028||Ireland|
Total debt portfolio as of 31 December 2020
|Item (SAR '000)||
||Original loan amount||Beginning balance||Additions during the year||Repayments during the year||Non-cash*||Ending balance||Period of the loans (years)|
|Long Term and Financial Lease||41,507,822||32,417,175||3,371,223||-5,719,424||423,204||30,492,178||1-9|
The total debt portfolio as of 31 December 2020 by lending party
||Amount in SAR '000||%|
|Banks and Export Credit Agencies||26,471,800||58%|
|Public Investment Fund||998,483||2%|
|Industrial Development Fund||5,720,063||4%|
|Item (SAR '000)||
|Item (SAR '000)||
|End of Service Benefits||13,948,233||11,018,178||27%|
|Defined benefits pensions schemes||2,897,785||2,500,834||16%|
|Post-retirement medical benefits||1,79,593||1,195,294||32%|
|Long-term service awards||165,938||134,352||24%|
|Early Retirement Plan||30,989||32,150||-4%|