Saudi Arabia: Aramco’s key move on Sukuk bonds
Riyadh: Saudi Aramco has launched Sukuk Bonds in US Dollars for the first time on Wednesday which will be issued in three installments.
According to the foreign news agency Reuters, it is clear in the term sheet that the contract will consist of three, five and 10 year installments.
Providing price guidance for potential investors, the US Treasury Department has set plus 105 basis points for three years, plus 125 basis points for five years, and 160 basis points for 10 years.
Reuters quoted a source as saying that Aramco’s preference for issuing Islamic bonds over traditional bonds was due to a few dollars increase in Sukuk bond sales in the Gulf this year. And the final terms are expected on Wednesday.
Following the 12 billion deal in 2019, Aramco was expected to issue regular bonds. Following the 2019 deal, Aramco had a 8 billion deal.
Last year there was a five-part transaction while Aramco also funds its profits. According to the termsheet, 29 active and inactive book runners are attached to the contract.