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Home / Business / The IPO of Aramco will help destroy the planet, warn environmental groups

The IPO of Aramco will help destroy the planet, warn environmental groups



In a letter to Goldman Sachs ( GS ) JPMorgan Chase ( JPM ) and other English: emagazine. The environmental activists, the leading investment banks, warned that Aramco, the crown jewel of Saudi Arabia, could raise billions of dollars through the IPO, which aggravate the climate crisis. English: emagazine.credit-suisse.com/app/art … = 120 & lang = en The more fossil fuel financing by banks increases, the more public outrage will increase, "wrote the Sierra Club, the Rainforest Action Network, Friends of the Earth and other activist groups.

The letter was released on Thursday, hours before News from Aramco, Dispatched The flotation again delayed the IPO to give investors more time to understand the impact of the September attacks on its oil facilities.

Wall Street companies will become A's Call to sever relations with Aramco, most likely will not follow. The IPO, which could bring a record of $ 40 billion, would bring hefty fees and coveted boasting rights to investment banks.

  Saudi Arabia is only allowed to sell 2% of Aramco. It could still be the biggest IPO in history.
Nevertheless, the strong criticism of environmental groups is another obstacle to the IPO of Aramco. Aramco and its bankers faced an unprecedented attack on the state-owned infrastructure in September and deep skepticism among investors and analysts about the targeted high valuation. And some investors are reluctant to invest more money in fossil fuels. That's why Singapore's Temasek Holdings has decided against investing in the Aramco IPO, according to the Wall Street Journal.
The letter was sent to the CEOs of seven major banks that reportedly coordinated the initial public offering of Aramco: Bank of America [ BAC ) Goldman Sachs, JP Morgan, Citigroup ( C ) Credit Suisse (19459004] CS ) Morgan Stanley ( MS ) and HSBC ( HBCYF ) .

None of the banks would comment on the letter to CNN Business.

The timing of the Aramco deal remains questionable. Although the company was expected to release its IPO prospectus next week, a CNN Business source said the timing of the blockbuster listing has been postponed to allow time for quarterly results to be released, clarifying the impact of the attacks of the last month.

A delay would jeopardize the plan to list Aramco in Saudi Arabia next month. The listing is at the heart of the 2030 Vision 2030 plan to separate the economy from its dependence on oil. However, the environmental groups warned the Wall Street banks on Thursday that the IPO of Aramco would represent the largest single capital infusion into the fossil fuel industry since at least the conclusion of the Paris Agreement on Climate Change in late 2015. This would include Aramco, which was recently named by the Guardian the world's largest corporate emitter classified by carbon dioxide, give serious financial firepower.

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The promotion of oil reserves by Aramco over the coming decades is a "recipe for Financing the destruction of the planet ". Recalling that UN climate scientists have warned that global emissions must fall drastically to avoid 'catastrophic consequences'.

The environmental organizations suggested it would be hypocritical for major banks to complete Aramco's IPO while respecting human rights and human rights, expressing their concerns about climate change.

"It will be clear that your environmental and social statements are not sincere," the letter says, "and when it comes to dispelling your concerns about short-term gains, everyone else outweighs them."


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