Dhahran, October 5, 2024 — In a significant move reinforcing its global financial position, Aramco, one of the world’s foremost integrated energy and chemicals companies, announced the successful completion of a $3 billion international sukuk issuance. The announcement was made through a press release today, detailing that the issuance comprises two US dollar-denominated tranches, each amounting to $1.5 billion. The first tranche matures in 2029 and carries a profit rate of 4.25% per annum, while the second tranche matures in 2034 with a slightly higher profit rate of 4.75% per annum.
The sukuk issuance was priced on September 25, 2024, and the securities are now listed on the London Stock Exchange, reflecting Aramco’s commitment to global investment standards and market accessibility. The offering garnered remarkable interest from investors, achieving an impressive six times oversubscription, which underscores the robust demand for Aramco’s financial instruments.
Aramco's decision to price both tranches with a negative new issue premium highlights the company's strong credit profile and investor confidence in its financial stability. The successful sukuk issuance is a strategic step for Aramco, aimed at diversifying its investor base, enhancing liquidity, and re-establishing its sukuk yield curve in the market.
Ziad Al-Murshed, Aramco’s Executive Vice President and Chief Financial Officer, expressed enthusiasm about the outcome, stating, “Building on the strong investor reception from our July 2024 bond issuance, this sukuk offering represented an opportunity to engage with a broader investor base. The impressive demand, as demonstrated by the oversubscribed sukuk order book, reflects Aramco’s unique credit proposition, underpinned by its competitive advantage and a proven track record of financial resilience through cycles.”
This latest issuance is indicative of Aramco's proactive approach to financing and investment strategies, aimed at not only maintaining its market leadership but also ensuring sustainable growth amidst evolving economic landscapes. By tapping into the sukuk market, Aramco continues to leverage its strong financial fundamentals and commitment to innovation, positioning itself favorably for future opportunities in both domestic and international markets.