Aramco, one of the world’s leading integrated energy and chemicals companies, announced in a press release today that it had completed a $3 billion international sukuk issuance comprised of two US dollar-denominated tranches: $1.5 billion maturing in 2029, carrying a profit rate of 4.25% per annum, and $1.5 billion maturing in 2034, carrying a profit rate of 4.75% per annum.
According to the release, the issuance was priced on September 25, 2024, and the securities were listed on the London Stock Exchange.
The offering received strong demand and was six times oversubscribed. Both tranches were priced with a negative new issue premium, reflecting Aramco’s strong credit profile. The successful issuance builds on Aramco’s efforts to diversify and broaden its investor base, further enhance 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. 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.”
Source: spa.gov.sa
