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Aramco is hitting international debt markets again: Saudi Aramco kicked off yesterday the sale of USD-denominated unsecured sukuk, the company said in two disclosures to Tadawul (here and here), marking what will be its second international bond sale of the year. The oil giant is reportedly looking to raise up to USD 3 bn in the sale, according to documents and sources cited by Reuters and Bloomberg. Proceeds from the offering are earmarked for “general corporate purposes,” Aramco said in its disclosure.
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What we know: The issuance will be split into five-year and 10-year tranches, Bloomberg reports, citing a source with knowledge of the matter, although Aramco said in its disclosures that the exact tenure and yield will be determined by market conditions. Minimum subscription is set at USD 200k, the disclosures also said.
REMEMBER: Aramco closed its first bond sale in three years in July, lining up USD 6 bn — USD 1 bn more than it had originally targeted in an offering that was 6x oversubscribed. The three-part USD-denominated issuance was split into 10-year, 30-year and 40-year tranches.
ADVISORS- Al Rajhi Capital, Citigroup, Dubai Islamic Bank, First Abu Dhabi Bank, Goldman Sachs International, HSBC, JPMorgan, KFH Capital, and Standard Chartered have been tapped as active joint bookrunners on the offering, while Abu Dhabi Commercial Bank, Albilad Capital, Alinma Investment, BOC International, Emirates NBD Capital, Mizuho, MUFG, Natixis, Sharjah Islamic Bank, and SMBC Nikko will be stepping as passive bookrunners.
IN OTHER DEBT NEWS-
Zahrat Al Waha Trading Company signed a SAR 60 mn loan agreement with Qatar National Bank to finance letters of credit to buy raw materials, it said in a disclosure to Tadawul. The company has provided order notes as guarantees. The financing agreement runs until 26 June, 2025.
