Thursday, Sep 16, 2021
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Oil behemoth Aramco begins Islamic bond sale

Aramco Islamic bond_IFM_Image
The sukuk sale, which began on June 7th, is expected to conclude on June 17th

Saudi Arabia-based oil giant Saudi Aramco has started the process of selling its first dollar-denominated Islamic bond or Sukuk, according to local media reports. The sale of Sukuk by Aramco started on June 7 and will conclude on June 17th.

It is unclear how much Aramco is planning to raise through the Islamic bond sale. Previously, Aramco raised $12 billion by selling bonds in 2019 and an $8 billion offering in November last year, however, they were not Islamic bonds. Aramco is raising money to help pay an annual dividend of $75 billion.

It was also reported that Saudi Aramco has hired a large group of banking giants for its Islamic bond sale. The active book-runners on the deal are Alinma Invest, Al Rajhi Capital, BNP Paribas, Citi, First Abu Dhabi Bank, Goldman Sachs International, HSBC, JPMorgan, Morgan Stanley, NCB Capital, Riyad Capital, SMBC Nikko and Standard Chartered Bank.

Passive book-runners on the deal include Albilad Capital, AlJazira Capital, Alistithmar Capital, ANB Invest, Credit Agricole, Dubai Islamic Bank, Emirates NBD Capital, GIB Capital, MUFG, Saudi Fransi Capital and Societe Generale among others.

Earlier this year, Saudi Aramco has agreed to a new $12.4 billion pipeline deal with a consortium led by EIG Global Energy Partners, media reports said. According to the deal, Aramco will sell a 49 percent stake in Aramco Oil Pipelines Company to the EIG-led consortium.

Aramco President Amin Nasser told the media, “This landmark transaction defines the way forward for our portfolio optimisation programme.”

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