Saudi Aramco launches first dollar sukuk

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Reuters

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A conditions document seen by Reuters reported that Saudi Aramco launched its first US dollar-denominated sukuk today, Wednesday, which will be issued in three tranches.

The document reveals that the deal will consist of three, five and ten-year tranches.

Potential investors received indicative pricing for the three-year tranche of 105 basis points over the US Treasury, for the five-year tranche of 125 basis points over the US Treasury and for the ten-year tranche of 160 basis points over the US Treasury.

A source told Reuters on Monday that Aramco preferred to issue Islamic bonds over conventional bonds due to the high demand for the sukuk instrument due to the lack of dollar sukuk sales from the Gulf this year.

The final terms and size are expected to be announced on Wednesday.

Aramco was widely expected to become a regular issuer of bonds after its first offering in a $12 billion deal in 2019, which was followed by another $8 billion in a five-part process in November last year, which was also used in Financing its dividends.

Source: Reuters





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