Aramco, one of the world’s leading integrated energy and chemicals companies, today 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.”