Aramco plans to issue USD-denominated international sukuk

Saudi Arabian Oil Co. (Saudi Aramco) announced its intention to offer international sukuk under the SA Global Sukuk Limited’s Trust Certificate Issuance Program.

The sukuk will constitute US dollar-denominated, direct, unsubordinated, unsecured and limited recourse obligations of SA Global Sukuk, Saudi Aramco said in a statement to Tadawul.

Value of the offer is subject to market conditions, the statement noted, adding that the net proceeds will be used by Saudi Aramco for general corporate purposes.

The company mandated Al Rajhi Capital, Citi, Dubai Islamic Bank, First Abu Dhabi Bank, Goldman Sachs International, HSBC, JP Morgan, KFH Capital and Standard Chartered Bank as active joint bookrunners to organize a series of fixed income investor meetings from Sept. 24.

Abu Dhabi Commercial Bank, Albilad Capital, Alinma Investment, BOC International, Emirates NBD Capital, Mizuho, MUFG, NATIXIS, Sharjah Islamic Bank and SMBC Nikko have been mandated as passive joint bookrunners.

The issuance will be subject to the approval of the official authorities. In addition, it will be issued in accordance with the Rule 144A/Reg S offering requirements under the US Securities Act of 1933, as amended.

The stabilisation rules of the Financial Conduct Authority (FCA) and the International Capital Market Association (ICMA) will also apply to the issuance.

Application will be made for the trust certificates to be admitted to the official list of the FCA and to the London Stock Exchange and for such sukuk to be admitted to trading on the London Stock Exchange’s main market, the statement said.

The offering will be limited to qualified investors in the jurisdictions in which the offering will be made, in accordance with the rules and regulations of such jurisdictions, it added.

Saudi Aramco completed the issuance of international medium-term bonds worth $6 billion in July, data available with Argaam showed.

The oil giant said at the time that the maturities of the bonds would be 10, 30 and 40 years, with a total of 30,000 bonds at a nominal value of $200,000 and integral multiples of $1,000 in excess thereof.