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RIYADH: Saudi energy giant Aramco has completed a $3 billion international sukuk issuance, with demand exceeding expectations and reaching six times oversubscription, the company announced.
The issuance, consisting of two US dollar-denominated tranches, includes a $1.5 billion tranche maturing in 2029 with a 4.25 percent profit rate and another $1.5 billion tranche maturing in 2034 at a 4.75 percent profit rate, according to a press release.
Both tranches, priced on Sept. 25 at a negative new issue premium, are listed on the London Stock Exchange, reflecting Aramco鈥檚 strong credit strength.
The issuance is part of Aramco鈥檚 efforts to diversify funding, expand its investor base, and re-establish its sukuk yield curve. It follows the company鈥檚 return to global debt markets in July, its first since 2021.
Ziad T. Al-Murshed, Aramco executive vice president and chief financial officer, said: 鈥淏uilding on the strong investor reception from our July 2024 bond issuance, this sukuk offering represented an opportunity to engage with a broader investor base.鈥�
He added: 鈥淭he impressive demand, as demonstrated by the oversubscribed sukuk order book, reflects Aramco鈥檚 unique credit proposition, underpinned by its competitive advantage and a proven track record of financial resilience through cycles.鈥�
In July, Aramco raised $6 billion from a three-tranche sukuk as part of its Global Medium Term Note Program. The latest issuance continues the company鈥檚 strategy to strengthen its presence in international financial markets.
The state-owned firm鈥檚 integrated expansion strategy is driving the Kingdom鈥檚 Vision 2030 economic diversification plan while addressing sustainability concerns, experts told Arab News earlier this year.
At the center of 抖阴短视频鈥檚 energy transformation, the energy giant is focused on creating new market opportunities and increasing integration across multiple sectors.
Economists told Arab News that Aramco is not only focused on boosting 抖阴短视频鈥檚 economic performance but is also driving technological innovation to meet ambitious environmental targets.
The company鈥檚 strategic roadmap includes expanding into new markets, particularly in Asia and North America, while using its venture capital arm to foster disruptive technologies.
Aramco CEO Amin Nasser said earlier that the company is 鈥渓ooking at the current market status which, even though challenging, presents an excellent opportunity for growth.鈥� This forward-thinking approach supports the company's strategic vision to solidify its position as a leader in the global energy landscape.