Aramco has announced the completion of a $3 billion (€2.7 billion) international sukuk issuance, comprised of two US dollar-denominated tranches.
The tranches are split in two ways. $1.5 billion (€1.3 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.
The issuance was priced on 25 September, 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. 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.
Ziad T. Al-Murshed, Aramco executive vice president & CFO says: ‘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.’
