Saudi Aramco Raises $6 Billion with Debut Sukuk

SourceAsharq AL-awsat
SectorFinancial Markets
CountrySaudi Arabia

The logo of Aramco is seen as security personnel walk before the start of a press conference by Aramco at the Plaza Conference Center in Dhahran, Saudi Arabia November 3, 2019. (Reuters)

Saudi Arabian oil giant Aramco locked in another $6 billion on Wednesday to help fund a large dividend as it returned to the international debt markets with its first US dollar-denominated sukuk sale, a document showed.

The debt issuance, which will help fund a $75 billion dividend commitment that will mostly go to the government, comprises tranches of three, five and 10 years, a document from one of the banks arranging the deal and seen by Reuters showed.

Aramco sold $1 billion in the three-year tranche at 65 basis points (bps) over US Treasuries (UST), $2 billion in the five-year portion at 85 bps over UST and $3 billion in 10-year paper at 120 bps over UST.

Initial price guidance was around 105 bps over UST for the three-year bonds,...read more...