Riyadh – Mubasher: Saudi Arabian Oil Company (Aramco) has concluded a $3 billion international Sukuk issuance that comprised of two equal US dollar-denominated tranches.
The first $1.50 billion offering matures in 2029, carrying a profit rate of 4.25% per annum, while the second $1.50 billion issue will mature in 2034 and hold a 4.75% annual profit rate, according to Aramco’s statement on 3 October 2024.
Receiving strong demand and oversubscribed six times, the international Sukuk issuance was priced on 25 September this year and the securities were listed on the London Stock Exchange (LSE).
The listed company noted that both tranches were priced with a negative new issue premium which reflects Aramco’s strong credit profile.
Issuing the Sukuk builds on Aramco’s efforts to diversify and broaden its investor base, further endorse liquidity, and re-establish its Sukuk yield curve.
Aramco Executive Vice President and CFO, Ziad Al Murshed, said: “Building on the strong investor reception from our July 2024 bond issuance, this Sukuk offering represented an opportunity to engage with a broader investor base.”
Al Murshed added: “The impressive demand, as demonstrated by the oversubscribed sukuk order book, reflects Aramco’s unique credit proposition, underpinned by its competitive advantage and a proven track record of financial resilience through cycles.”
It is worth noting that Aramco recently entered into a five-year cooperation framework agreement with the China National Building Material Group Company Limited (CNBM) to explore new opportunities in advanced materials and industrial development.
