Shariah-compliant securities
The Saudi Arabian Oil Company announced it has successfully raised $6 billion, following the sale of US dollar-denominated Shariah-compliant securities to leading institutional investors.
The issuance comprised three tranches of senior unsecured Sukuk trust certificates issued under Aramco’s newly established International Sukuk Program, with the funds raised allocated for general corporate purposes.
The three tranches included:
$1,000,000,000 maturing in 2024, carrying a profit rate of 0.946%;
$2,000,000,000 maturing in 2026, carrying a profit rate of 1.602%;
$3,000,000,000 maturing in 2031, carrying a profit rate of 2.694%.
Aramco President & CEO, Amin H. Nasser, said: “We are very pleased with the global investment community’s response to Aramco’s first international dollar Sukuk, which attracted demand 20 times the initial targeted issuance size. The outcome demonstrates further evidence of Aramco’s unique value proposition, which is underwritten by its operational and financial resilience. This is of course made possible by our employees, who continue to make a difference by safely and reliably delivering energy to the world.”
The transaction settled on June 17, 2021 with the Sukuk admitted to the official list of the United Kingdom Financial Conduct Authority, for trading on the London Stock Exchange’s main market.
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