Islamic Finance

Aramco raises $6 billion through world’s largest US-dollar corporate sukuk

Published 18 Jun,2021 via Asharq Alawsat (English Edition) - Saudi Aramco announced on Thursday that it has succeeded in raising $6 billion from its first dollar-denominated Islamic bond sale to major institutional investors.

The three-tranche sukuk, or Islamic bonds compliant with the Muslim faith, are due in three, five and 10 years, the company said in a statement.

Aramco "successfully raised $6 billion, following the sale of US dollar-denominated sharia-compliant securities to leading institutional investors", the statement said.

Aramco issued 30,000 sukuk with a par value of $200,000 each, it said in a filing to the Tadawul stock exchange.

“We are very pleased with the global investment community’s response to Aramco’s first international dollar Sukuk, which attracted demand 20 times the initial targeted issuance size,” said Aramco CEO and President Amin Nasser.

“The outcome demonstrates further evidence of Aramco’s unique value proposition, which is underwritten by its operational and financial resilience,” he added.

“This is of course made possible by our employees, who continue to make a difference by safely and reliably delivering energy to the world,” noted the oil giant’s president.

The securities were issued in three tranches, with the three-year notes paying 0.946%, 5-year notes at 2.602% and 10-year bonds 2.694%.

The sale, launched on June 9, was Aramco’s first dollar-denominated sukuk.

Aramco’s debut $12 billion bond deal in 2019 was followed by an $8 billion, five-part transaction in November last year, both used to fund its dividend.

The sale attracted orders exceeding $60 billion and added 100 new investors across the globe, Aramco said.

“We are delighted with the strong reception for our inaugural international Sukuk offering that led to the largest order book ever recorded globally for a dollar-denominated Sukuk transaction, with orders exceeding $60 billion,” said Aramco Senior Vice President of Finance, Strategy and Development Khalid Al-Dabbagh.

“The success of the transaction is a strong endorsement from the global investment community of our leading position in the industry, and our ability to deliver on our long-term business strategy,” he added, noting that the issuance attracted more than 100 new investors across the globe.

The transaction settled on June 17, 2021, with the Sukuk admitted to the official list of the United Kingdom Financial Conduct Authority, for trading on the London Stock Exchange’s main market.

Copyright © Saudi Research and Publishing Co. All rights reserved. Provided by SyndiGate Media Inc. (


DISCLAIMER: This content is provided to us “as is” and unedited by an external third party provider. We cannot attest to or guarantee the accuracy of information provided in this article from the external third party provider. We do not endorse any views or opinions included in this article. 


Author Profile Image
Asharq Alawsat