Saudi Aramco, one of the world’s leading integrated energy and chemicals companies, announced the completion of a $3 billion international sukuk issuance.
The issuance comprises two U.S. dollar-denominated tranches: $1.5 billion maturing in 2029, carrying a profit rate of 4.25 percent per annum, and another $1.5 billion maturing in 2034, carrying a profit rate of 4.75 percent per annum.
Aramco’s sukuk issuance was priced on September 25, 2024, and the securities were listed on the London Stock Exchange. The company said that the offering recorded a six times oversubscription, reflecting strong investor demand. In addition, Aramco priced both tranches with a negative new issue premium, reflecting its strong credit profile.
The successful sukuk issuance builds on Aramco’s efforts to diversify and broaden its investor base, further enhance liquidity, and re-establish its sukuk yield curve.
“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,” stated Ziad T. Al-Murshed, Aramco executive vice president and CFO.
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Al-Murshed explained that the remarkable demand reflects Aramco’s unique credit proposition. In addition, it highlights the company’s competitive advantage and track record of financial resilience through cycles.
In July, Aramco raised $6 billion from a three-tranche sukuk that it launched under its Global Medium Term Note Program.
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