September 25, 2024

Aramco Plans to Issue Dollar-Denominated Sukuk to Support Global Expansion 🌍

Saudi energy giant Aramco is set to issue US dollar-denominated sukuk through its SA Global Sukuk Limited’s Trust Certificate Issuance Programme, according to a filing on the Tadawul exchange. The size of the issuance will be determined by market conditions and investor demand at the time of the offering.

Proceeds from the sukuk will be directed towards Aramco’s ongoing strategic initiatives, strengthening its balance sheet, and supporting expansion across global operations. This move is part of Aramco’s vision to ensure long-term financial sustainability and operational efficiency in the evolving energy landscape.

The sukuk will comply with Rule 144A/Reg S offering requirements under the US Securities Act of 1933, allowing Aramco to reach institutional investors in both US and international markets. An application will be made for the sukuk to be listed on the London Stock Exchange’s main market, providing liquidity for investors.

Several leading financial institutions, including Al Rajhi Capital, Citi, and Dubai Islamic Bank, have been appointed as active joint bookrunners. Fixed-income investor meetings will begin on Sept. 24 to generate interest among global investors, with strong demand expected due to Aramco’s solid credit rating and the sukuk’s Shariah-compliant nature.

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