Saudi Arabia’s multinational petroleum and natural gas company, Saudi Aramco has raised $6 billion through its first US dollar-denominated sukuk issue.
According to the company statement, the issuance comprised three tranches of senior unsecured sukuk trust certificates issued under Aramco’s newly established International sukuk Program. The funds raised are intended for general corporate purposes.
The three tranches comprise one worth $1 billion tranche maturing in 2024 with a profit rate of 0.946 percent, a $2 billion tranche maturing in 2026 with a profit rate of 1.602 percent, and a $3 billion tranche maturing in 2031 with a profit rate of 2.694 percent.
“We are very pleased with the global investment community’s response to Aramco’s first international dollar sukuk, which attracted demand 20 times the initial targeted issuance size. The outcome demonstrates further evidence of Aramco’s unique value proposition, which is underwritten by its operational and financial resilience. This is of course made possible by our employees, who continue to make a difference by safely and reliably delivering energy to the world.”
Mr. Khalid Al-Dabbagh, Aramco Senior Vice President of Finance, Strategy and Development said, “We are delighted with the strong reception for our inaugural international sukuk offering that led to the largest order book ever recorded globally for a dollar-denominated sukuk transaction, with orders exceeding $60 billion.”
“The success of the transaction is a strong endorsement from the global investment community of our leading position in the industry, and our ability to deliver on our long-term business strategy. The issuance attracted more than 100 new investors across the globe,” commented Mr. Al-Dabbagh.
The sukuk was accepted to the official list of the United Kingdom Financial Conduct Authority, allowing it to trade on the London Stock Exchange’s main market, as per the reports.
Recently, Aramco has hired several banks to assist on its Sukuk issue, including Al Rajhi Capital, BNP Paribas, Citigroup, First Abu Dhabi Bank, and Goldman Sachs.