Saudi Aramco raises $6bn via US dollar corporate sukuk

Author: Pearl Bantillo

2021/06/18

SINGAPORE (ICIS)--Energy giant Saudi Aramco has raised $6bn in its first-ever US dollar-denominated Islamic bond or sukuk issue, which attracted offers exceeding $60bn from 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,” Saudi Aramco said in a statement.

“The issuance attracted more than 100 new investors across the globe,” said Khalid Al-Dabbagh, senior vice president of finance, strategy and development at Saudi Aramco.

The transaction settled on 17 June, with  the sukuk admitted for trading on the London Stock Exchange’s main market, it said.

Alinma Invest, Al Rajhi Capital, BNP Paribas, Citi, First Abu Dhabi Bank, Goldman Sachs, HSBC, JP Morgan, Morgan Stanley, NCB Capital, Riyad Capital, SMBC Nikko and Standard Chartered Bank were hired as joint bookrunners for the bond offering.

This was Saudi Aramco's third foray into the bond market since 2019. It raised $12bn from its maiden issue in April 2019, and $8bn in November last year.