Week 26 in Review: From bonds to pipelines to travel apps and beyond
Aramco’s announcement of the largest ever international Sukuk was the top headline over the past week.
Here are some of the biggest headlines over the past week on Aramco Life.
Aramco 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 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,” said Khalid H. Al-Dabbagh, senior vice president of Finance, Strategy and Development.
Aramco and an international investor consortium, including EIG and Mubadala, announced the successful closing of the share sale and purchase agreement, in which the consortium has acquired a 49% stake in Aramco Oil Pipelines Company, a subsidiary of Aramco, for $12.4 billion.
The consortium consists of a broad cross-section of investors from North America, Asia and the Middle East.
As part of the transaction, first announced in April, Aramco Oil Pipelines Company and Aramco entered into a 25-year lease and leaseback agreement for Aramco’s stabilized crude oil pipelines network. Aramco Oil Pipelines Company will receive a tariff payable by Aramco for stabilized crude oil flows, backed by minimum volume commitments.
Aramco continues to hold a 51% majority stake in Aramco Oil Pipelines Company and retains full ownership and operational control of its stabilized crude oil pipeline network.
Employees and contractors now have access to a single, unified digital platform for tracking on- and off-road vehicle journeys, according to Information Technology (IT) and the Loss Prevention Department (LPD).
IT and LPD have introduced a new SafeTravel journey management system.
The SafeTravel solution, accessible from mobile devices and workstations, is a simple-to-use application that integrates existing systems, such as automatic vehicle location, an emergency responder tool, and a geographic information system.
A major advantage of SafeTravel is its ability to maintain constant communication between the driver and journey coordinators. Once a driver begins a trip using the SafeTravel mobile app, the route is immediately updated onto a journey management GIS dashboard.
If for some reason a driver is unable to reach his or her destination within an hour of the planned arrival time, alerts are triggered to direct management and journey coordinators.
The Yanbu' Refinery Department (YRD) has achieved “6 Star Recognition” from the European Foundation for Quality Management (EFQM), the first organization to reach such a level in Saudi Arabia.
The award recognizes organizations that have achieved an “outstanding level of sustainable achievement,” according to the Brussels-based nonprofit member foundation, which was established more than 30 years ago to promote business excellence.
YRD demonstrated a strong commitment to its sustainable best practices that distinguished it from its peers through showcasing an array of impactful systems and programs across the “eight fundamental concepts of excellence” in the EFQM Model.
- Adding value for customers
- Creating a sustainable future
- Developing organizational capability
- Harnessing creativity and innovation
- Leading with vision, inspiration, and integrity
- Managing with agility
- Succeeding through the talent of people
- Sustaining outstanding results.
As part of its newly established Mergers and Acquisitions (M&A) Program, the Finance Strategy and Development (FS&D) Business Academy earlier this month held two separate online onboarding sessions as part of an inaugural program launch to welcome more than 100 candidates.
The M&A Program certification courses are conducted by the Institute of Mergers and Acquisitions Alliance (IMAA), a leading provider of internationally recognized M&A certifications.
Reflecting on the partnership with Aramco, professor Christopher Kummer, president of IMAA, noted: “Aramco’s initiative to invest in its employees for future acquisitions is a smart choice. This preparation is an important cornerstone to ensure both personal growth and transactions success. As the global leader in M&A best practices, IMAA is excited to partner with Aramco and offer these M&A learning resources.”