Investor Demand for Saudi Aramco’s Inaugural Islamic Bonds Tops US$30 Billion

Islamic Money Markets
Islamic Money

Aggregate demand of investors for Islamic bonds, called sukuk, issued by Saudi Arabia’s state oil and gas company Saudi Aramco exceeds $30 billion, a source in the financial sector told Sputnik on Wednesday.

On Monday, a source familiar with the situation told Sputnik that the energy giant was planning to offer several tranches of dollar-denominated Islamic bonds due in three, five and 10 years. The company has since made a series of calls with investors on the possible placement of bonds.

A total of 13 financial institutes have been mandated to float the bonds, including Alinma Investment Company, Al Rajhi Capital, BNP Paribas, Citi, First Abu Dhabi Bank, Goldman Sachs, HSBC, J.P. Morgan, Morgan Stanley, NCB Capital, Riyad Capital, SMBC Nikko and Standard Chartered Bank.

Bloomberg reported earlier, citing informed sources, that about $5 billion could be raised by Saudi Aramco in a new round of bond sales in June.

The company’s debut offering was made in April 2019 and estimated at $12 billion. The previous offering last November raised $8 billion through five tranches of Eurobonds.

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