Saudi Aramco has recently announced that it started issuing U.S. dollar-denominated sukuk under its SA Global Sukuk Limited’s Trust Certificate Issuance Program, according to a statement on the Saudi Exchange. The sukuk will constitute U.S. dollar-denominated, direct, unsubordinated, unsecured and limited recourse obligations of SA Global Sukuk Limited.
This issuance comes after Aramco raised $6 billion from its first bond issuance in three years in July.
Aramco targets institutional investors
Aramco has not yet announced the size, price or maturity of the offering, noting that it is subject to market conditions. Saudi Aramco will use the net proceeds for general corporate purposes. The statement also revealed that the offering start date begins today, September 24, and ends on October 2, 2024.
With this sukuk issuance, Aramco is targeting institutional investors who are qualified investors in the jurisdictions in which the offering will be made in accordance with the rules and regulations of such jurisdictions.
The announcement also noted that Aramco will issue the sukuk in accordance with the Rule 144A/Reg S offering requirements under the U.S. Securities Act of 1933G, as amended. The stabilization rules of the Financial Conduct Authority (FCA) and the International Capital Market Association (ICMA) will also apply to the issuance.
Read: Aramco raises stake in MidOcean to 49 percent, expands into South America with Peru LNG share
Sukuk to list on FCA, London Stock Exchange
In addition, the company will apply to list the sukuk on the FCA and the London Stock Exchange’s main market.
The oil giant has appointed Al Rajhi Capital, Citi, Dubai Islamic Bank PJSC, First Abu Dhabi Bank, Goldman Sachs International, HSBC, J.P. Morgan, KFH Capital, and Standard Chartered Bank as active joint bookrunners.
Meanwhile, Abu Dhabi Commercial Bank PJSC, Albilad Capital, Alinma Investment, BOC International, Emirates NBD Capital, Mizuho, MUFG, NATIXIS, Sharjah Islamic Bank, and SMBC Nikko will act as passive joint bookrunners.
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