JEDDAH: Saudi energy giant Aramco has raised $3 billion through a dual-tranche sukuk issuance, highlighting strong global investor confidence and reinforcing the Kingdom’s standing in international Islamic finance.
Priced on Sept. 10, the securities were listed on the London Stock Exchange, the company said. Proceeds will be used for general corporate purposes, supporting Aramco’s strategy to maintain financial flexibility and operational efficiency.
The new sukuk tranches comprise $1.5 billion maturing in 2030 with a profit rate of 4.125 percent per annum, and $1.5 billion maturing in 2035 at 4.625 percent per annum.
The issuance follows a similar $3 billion two-tranche sukuk in October, which was six times oversubscribed. That sale included a $1.5 billion tranche maturing in 2029 at 4.25 percent and another $1.5 billion tranche due in 2034 at 4.75 percent.
Ziad Al-Murshed, Aramco executive vice president of finance and CFO, said: “We believe this successful issuance reflects the confidence of global investors in Aramco’s exceptional financial resilience and robust balance sheet, as we continue to optimize our capital structure.”
He added: “Our ability to price the offering with a negative new issue premium across both tranches demonstrates Aramco’s unique credit proposition and standing within international capital markets.”
According to the company’s press release, the offering attracted robust demand from top-tier institutional investors.
Source: www.arabnews.com