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Aramco completes $3bn international sukuk issuance

RIYADH, October 3, 2024

Aramco, one of the world’s leading integrated energy and chemicals companies, on Thursday announced the completion of a $3 billion international sukuk issuance, comprised of two US dollar-denominated tranches. 
 
The tranches are split as follows:
• $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.
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.
 
Ziad T Al-Murshed, Aramco Executive Vice President & CFO, 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.” -TradeArabia News Service
 



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