Saudi Aramco will place Islamic bonds (sukuk) for $ 6 billion

It is noted that the volume of the 3-year tranche is $ 1 billion, it is placed with a premium of 65 basis points (bp) to UST. The volume of the 5-year tranche is $ 2 billion, the premium is 85 bp. to UST. The volume of the 10-year tranche is $ 3 billion, the premium is -120 bp. to UST

The placement is organized by Alinma Investment Company, Al Rajhi Capital, BNP Paribas, Citi, First Abu Dhabi Bank, Goldman Sachs International, HSBC, JP Morgan, Morgan Stanley (SPB: MS), NCB Capital, Riyad Capital, SMBC Nikko and Standard Chartered Bank.

The bonds of the Saudi oil giant are traditionally in high demand among investors, and the current deal was no exception - at its peak, the order book for Saudi Aramco bonds exceeded $ 60 billion. The previous time Saudi Aramco entered the debt market in November last year, placing five tranches of Eurobonds totaling $ 8 billion with demand over $ 50 billion.

At the end of 2019, 100% state-owned Saudi Aramco conducted an IPO on the local Tadawul exchange. The volume of the offer amounted to 3 billion shares, or 1.5% of the capital. In January 2020, an option was exercised to place an additional 450 million shares. As a result, the total volume of placement reached a record $ 29.4 billion for the global IPO market.

Source: Reuters

Farid Akbarov