Record Sukuk
Aramco raises $6 billion through the world’s largest U.S.-dollar corporate Sukuk
Demand was 20 times the initial targeted issuance size, reflecting strong investor appetite.
Aramco today (Thursday, June 17) announced it has successfully raised $6 billion following the sale of U.S. 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.
The three tranches included:
• $1,000,000,000 maturing in 2024, carrying a profit rate of 0.946%
• $2,000,000,000 maturing in 2026, carrying a profit rate of 1.602%
• $3,000,000,000 maturing in 2031, carrying a profit rate of 2.694%.
Aramco president and CEO Amin 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.
— Amin Nasser
Khalid H. Al-Dabbagh, senior vice president of Finance, Strategy and Development, 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,” Al-Dabbagh added.
The transaction settled on Thursday 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.