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Home > Reports > Annual Report 2021 > Business Performance > 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. 

Equity (Billion)

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 type
  • Issuing Amount
  • Total number
  • Per Value
  • Return
  • Maturity
  • Terms of Redemption
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:

ISIN Code
  • Issuer
  • Issuing Type
  • Par Volume
  • Return
  • Maturity
  • Listing
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

Liabilities (Billion)

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)
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
Short Term 11,817,874 1,346,996 2,970,878 - - 4,317,874 1
Bonds 14,499,048 10,580,967 3,727,765 -3,333,375 200,626 11,175,983 3-30
Total 67,824,744 44,345,138 10,069,866 -9,052,799 623,830 45,986,035
*This is mainly due to FX and Amortization effects.

The total debt portfolio as of 31 December 2020 by lending party

Lending Party
  • Amount in SAR '000
  • %
Amount in SAR '000 %
Banks and Export Credit Agencies 26,471,800 58%
Bonds 11,175,983 24%
Public Investment Fund 998,483 2%
Industrial Development Fund 5,720,063 4%
Related Parties 0 0
Finance Leases 5,720,063 12%
Total 45,986,035 100%
Below is a statement of the value of any paid during 2020 and outstanding statutory payment on account of any zakat, taxes, fees or any other charges that have not been paid until the end of the annual financial period.
Item (SAR '000)
  • 2019
  • 2018
  • %
2019 2018 %
Zakat 4,940,080 5,219,140 -5%
Income Taxes 2,751,360 3,385,686 -19%
Others 610,315 588,194 4%
Total 8,301,755 9,193,020 -10%
Reflecting the company’s commitment to its employees, below is a statement as to the value of any investments made or any reserves set up for the benefit of the employees of SABIC.
Item (SAR '000)
  • 2020
  • 2019
  • %
2020 2019 %
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%
Saving Plans 1,033,447 929,597 11%
Total 19,655,985 15,810,405 24%

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