Saudi Aramco raises $6bn from 1st US-dollar sukuk issue
Saudi oil giant Saudi Aramco has raised $6bn from its first ever US dollar-denominated sukuk or Islamic bond issue, the company announced on June 18.
The issue attracted 20 times more demand than its size, with the largest order book ever recorded for a dollar-denominated sukuk transaction, Aramco said. It was settled on June 17, and the sukuk were admitted for trading on the London stock exchange's main market.
"The issuance comprised three tranches of senior unsecured sukuk trust certificates issued under Aramco's newly established international sukuk programme, with the funds raised allocated for general corporate purposes," Aramco said in a statement.
$1bn in bonds are due to mature in 2024 with a 0.946% profit rate, while $2bn will mature in 2026 with a 1.602% profit rate and $3bn will mature in 2031 with a 2.694% profit rate.
"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," Aramco's senior vice president of finance, strategy and development, Khalid Al-Dabbagh, said. "The issuance attracted more than 100 new investors across the globe."