Saudi Aramco (2222) has issued international USD-denominated sukuk (sharia-compliant bonds), starting from Tuesday until October 2nd.
Details
The Sukuk will constitute direct, unsubordinated, unsecured, and limited recourse obligations of SA Global Sukuk Limited, the company said.
The minimum subscription amount is USD 200,000, with additional increments of $1,000 beyond that amount.
The offering will be restricted to qualified investors in eligible countries.
So what
Aramco hopes to raise USD 3 billion from its sukuk, with tenors of five and ten years, Reuters reported.
The company will use the proceeds for its general purposes.
Aramco, the world’s top oil exporter, has long been a cash cow for Saudi Arabia.
The country is seeking funds to invest in new industries and move its economy away from oil under its “Vision 2030.”
Some context
In July, Aramco issued USD 6 billion in bonds across three tranches, marking its first dollar-denominated debt issuance since 2021.
That issuance saw strong demand, with subscriptions exceeding USD 23 billion.
Now what
Aramco expects to distribute approximately USD 124 billion in cash dividends this year, most of which will go to the government, which directly owns around 81.5% of the company.
KSA’s Sovereign Wealth Fund (PIF) also holds a 16% stake.
It’s worth noting that Saudi Arabia generates around nine million barrels of oil per day, roughly 25% below its average production capacity.
