Saudi Aramco starts issuing USD-denominated sukuk

Logo of Saudi Arabian Oil Co. (Saudi Aramco)

Saudi Arabian Oil Co. (Saudi Aramco) started the issuance of US dollar denominated sukuk under the SA Global Sukuk Limited’s Trust Certificate Issuance Program, according to a Tadawul statement.

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The issuance value is subject to market conditions.

Issuance Details
Type	US denominated, direct, unsubordinated, unsecured sukuk with limited recourse obligations of SA Global Sukuk Limited
Value	Subject to market conditions
Start of Issuance	Sept. 24, 2024
End of Issuance	Oct. 2, 2024
Target Investors	Institutional investors (Qualified investors in the jurisdictions in which the offering will be made, in accordance with the rules and regulations of such jurisdictions).
Issuance Manager	Al Rajhi Capital, HSBC, First Abu Dhabi Bank, Dubai Islamic Bank, Standard Chartered Bank, KFH Capital, Goldman Sachs International, JP Morgan, and Citi are active joint bookrunners. SMBC Nikko, Alinma Investment, Albilad Capital, MUFG, Abu Dhabi Commercial Bank, BOC International, Emirates NBD Capital, Sharjah Islamic Bank, Mizuho, and NATIXIS are passive joint bookrunners.
Offering Price	Subject to market conditions
Par Value	$200,000
Return	Subject to market conditions
Maturity	Subject to market conditions
Terms of Redemption	Redemption (dissolution) on maturity (scheduled dissolution date); redemption following a dissolution event; early dissolution upon a tax event (at the option of Saudi Aramco); clean-up dissolution right (at the option of Saudi Aramco); dissolution upon a total loss event; tangibility event put right (at the option of sukukholders); optional dissolution right (at the option of Saudi Aramco); make whole dissolution right (at the option of Saudi Aramco); and change of control put right (at the option of sukukholders), each to be determined subject to market conditions.

In a separate statement, the company said the net proceeds will be used by Saudi Aramco for general corporate purposes.

The issuance will be subject to the approval of the official authorities. In addition, it will be issued in accordance with the Rule 144A/Reg S offering requirements under the US Securities Act of 1933, as amended. The stabilization rules of the Financial Conduct Authority (FCA) and the International Capital Market Association (ICMA) will also apply to the issuance.

Application will be made for the sukuk to be admitted to the official list of the FCA and to the London Stock Exchange and for such sukuk to be admitted to trading on the London Stock Exchange’s main market.

It added that the abovementioned date is the expected offering end date, according to market conditions.

According to data available with Argaam, the oil giant completed the issuance of $6 billion international bonds under its Global Medium Term Note (GMTN) Program.

It added that the yield is 5.250% for bonds maturing in 10 years, 5.750% for bonds maturing in 30 years, and 5.875% for bonds maturing in 40 years, with a par value of $200,000 and integral multiples of $1,000 in excess thereof.

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