Saudi Aramco completes issuance of USD 3 billion international sukuk

Beth:
Saudi Aramco announced today the completion of the issuance of international sukuk worth 3 billion US dollars, including the issuance of two tranches of sukuk denominated in US dollars.

Saudi Aramco explained that these tranches are divided as follows: USD 1.5 billion due in 2029, at an annual profit rate of 4.25%, in addition to USD 1.5 billion due in 2034, at an annual profit rate of 4.75%, as the issue price was set on September 25, 2024, and the sukuk was floated on the London Stock Exchange.

Saudi Aramco pointed out that the issuance witnessed a wide demand, as the volume of demand reached six times the size of the target issue, and the two tranches were priced positively, achieving a negative issuance premium for the new sukuk, reflecting the strength of Saudi Aramco's credit position.

The successful issuance comes as part of Saudi Aramco's efforts to diversify its investor base and enhance liquidity further, in addition to re-establishing the yield curve on Sukuk.

For his part, Executive Vice President and Chief Financial Officer of Saudi Aramco, Ziad Al-Murshed, said that the great turnout witnessed by the issuance of Bonds by Saudi Aramco in July 2024, which constituted an opportunity to communicate with a wider base of investors.

He pointed out that the high demand is a reflection of Saudi Aramco's unique solvency level, which is based on its competitive advantage and reliable record in achieving financial flexibility across various market cycles.