Arab News, Thursday, Jun 10, 2021 | Shawwal 29, 1442
Saudi Aramco launches first dollar sukuk bond
Saudi Arabia: Saudi Aramco launched its first US.dollar-denominated sukuk
bond on Wednesday which will be issued in three tranches, according to a term
sheet seen by Reuters.
The deal will consist of three, five and ten year tranches, the term sheet
showed.
Potential investors have been given pricing guidance for the three year of US
Treasuries plus 105 basis points, for the five year of US Treasuries plus 125
basis points and for the ten year of US Treasuries plus 160 basis points.
Aramco chose to issue Islamic bonds over conventional ones due to high demand
for the instrument as a result of few dollar sukuk sales from the Gulf this
year, a source told Reuters on Monday.
The final terms and size of the transaction are expected to be set on Wednesday.
Aramco has been widely expected to become a regular bond issuer after its debut
$12 billion bond deal in 2019 was followed by an $8 billion, five-part
transaction in November last year, also used to fund its dividend.
There are 29 active and passive bookrunners on the deal, the term sheet showed.