Aramco raises $6bn through world’s largest US-dollar corporate Sukuk

Aramco declares dividend of $18.75 billion in Q3

The Saudi Arabian Oil Company (“Aramco”) has raised $6 billion; following the sale of US dollar-denominated Shariah-compliant securities to leading institutional investors; the company announced in a statement on Thursday.

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.

According to the statement; the three tranches included one worth $1 billion maturing in 2024; carrying a profit rate of 0.946 percent; a $2 billion one maturing in 2026; with a profit rate of 1.602 percent and a $3 billion tranche maturing in 2031; having a profit rate of 2.694 percent.

First dollar sukuk

Commenting on the development; Aramco President and CEO; Amin H. Nasser; said: “We are also very pleased with the global investment community’s response to Aramco’s first international dollar Sukuk; which also attracted demand 20 times the initial targeted issuance size.”

“The outcome demonstrates further evidence of Aramco’s unique value proposition; which is also underwritten by its operational and financial resilience. This is of course made possible by our employees; who markedly continue to make a difference by safely and reliably delivering energy to the world.”

Khalid Al-Dabbagh; Aramco Senior Vice President of Finance; Strategy and Development; also said: “We are in delight 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 also 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 also attracted more than 100 new investors across the globe.”

The transaction settled on June 17; 2021 with further the Sukuk admitted to the official list of the United Kingdom Financial Conduct Authority; for trading on the London Stock Exchange’s main market.