25 Sep 2024
RIYADH: Saudi energy giant Aramco plans to issue US dollar-denominated sukuk under its SA Global Sukuk Limited’s Trust Certificate Issuance Programme, according to a filing on the Tadawul exchange.
The sukuk will represent direct, unsubordinated, and unsecured obligations of SA Global Sukuk Limited. The size of the issuance will depend on market conditions and investor demand at the time of the offering, the filing noted.
Proceeds from the issuance will be used for general corporate purposes, with a focus on supporting Aramco’s ongoing strategic initiatives, enhancing its balance sheet, and funding expansion across its global operations.
This move aligns with Aramco’s long-term vision of ensuring financial sustainability and operational efficiency as it adapts to a dynamic global energy landscape.
The issuance is subject to approval from regulatory authorities in the relevant jurisdictions. Additionally, the sukuk will comply with Rule 144A/Reg S offering requirements under the US Securities Act of 1933, as amended, allowing Aramco to target institutional investors in both the US and international markets.
The company confirmed that the issuance will follow the stabilization rules of the Financial Conduct Authority and the International Capital Market Association, ensuring a regulated and orderly process.
An application will be submitted for the sukuk to be listed on the FCA’s official list and traded on the London Stock Exchange’s main market, providing visibility and liquidity for investors.
Aramco has appointed several leading financial institutions as active joint bookrunners for the issuance, including Al Rajhi Capital, Citi, and Dubai Islamic Bank PJSC. Other institutions involved are First Abu Dhabi Bank, Goldman Sachs International, and HSBC, as well as J.P. Morgan, KFH Capital, and Standard Chartered Bank.
These institutions will lead a series of fixed-income investor meetings starting on Sept. 24. The meetings are expected to attract strong interest from global investors, given Aramco’s strong credit rating and the appeal of sukuk as a Shariah-compliant investment.
In addition to the active bookrunners, several other financial institutions have been named passive joint bookrunners. These include Abu Dhabi Commercial Bank PJSC, Albilad Capital, and Alinma Investment. Other institutions involved BOC International, Emirates NBD Capital, and Mizuho, as well as MUFG, NATIXIS, Sharjah Islamic Bank, and SMBC Nikko.
These institutions will support the successful placement of the sukuk in various international markets.