Saudi Arabian Oil Company (Aramco) has announced that it has successfully raised $6 billion, following the sale of US dollar-denominated shariah-compliant securities to leading institutional investors.
 
The issuance comprised three tranches of senior unsecured Sukuk trust certificates issued under Aramco’s newly established International Sukuk Program, with the funds raised allocated for general corporate purposes, said the state oil giant in its statement.
 
The three tranches included one worth $1 billion maturing in 2024, carrying a profit rate of 0.946%; a
$2 billion one maturing in 2026, carrying a profit rate of 1.602% and a $3 billion tranch maturing in 2031, carrying a profit rate of 2.694%.
 
On the successful sukuk, Aramco President and CEO Amin H. Nasser, said: "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," he added.
 
The sale comes after two previous bond offerings that were not compliant with Islamic law - a debut $12 billion sale in 2019 and an $8 billion offering in November last year.
 
The transaction was settled on June 17 with the sukuk admitted to the official list of the United Kingdom Financial Conduct Authority, for trading on the London Stock Exchange’s main market.
 
Aramco Senior VP (Finance, Strategy and Development) Khalid Al Dabbagh, 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," he added.
 
Passive bookrunners on the deal are ADCB, Albilad Capital, AlJazira Capital, Alistithmar Capital, ANB Invest, BOC International, Credit Agricole, Dubai Islamic Bank, Emirates NBD Capital, GIB Capital, KFH Capital, MUFG, Mizuho, NBK Capital, Saudi Fransi Capital and Societe Generale.-TradeArabia News Service