Debt Is the Easy Way for Aramco - Bloomberg

Debt Is the Easy Way for Aramco - Bloomberg:

Saudi Arabian Oil Co. is a gigantic company that owns gigantic oil reserves and makes gigantic amounts of money every year by pumping and selling that oil. It is also a state-owned company whose fortunes are intertwined with Saudi Arabia’s ruling dynasty, and that has some history of confusing the desires of that dynasty with the business needs of the company. Also it, or rather they—Saudi Aramco and the Saudi rulers, jointly—want to raise something on the order of $100 billion to diversify the Saudi economy. The rough idea is that investors would give Aramco a lot of money, and Aramco would give it to the Saudi state, and the Saudi state would invest the money in its Public Investment Fund. The outside investors would then have an investment in Aramco, and the state would reduce its investment in Aramco and would diversify itself by using the PIF money to buy, like, stakes in tech startups or whatever.

Given that simplified background, here is a question: Should Aramco raise debt or equity? There are, it seems to me, some really good arguments for debt:

Aramco is a giant company with oceans of oil reserves and tons of cash flow, so it can probably pay back any money it borrows.