On Tuesday, Saudi Aramco began issuing worldwide sukuk, or Islamic bonds, denominated in US dollars. The sukuk offering, which is a component of SA Global Sukuk Limited’s Trust Certificate Issuance Program, will remain open until October 2.
Aramco stated in a filing on the Saudi Stock Exchange (Tadawul) that market conditions and investor demand at the time of the offering will decide the offering’s value. Subject to market conditions, the minimum subscription amount will be $200,000, with integrated multiples of $1,000 beyond that sum.
The entities in charge of issuing sukuk comprise a number of prominent financial institutions that function as active bookrunners. These include Standard Chartered Bank, Al Rajhi Capital, HSBC, First Abu Dhabi Bank, Dubai Islamic Bank PJSC, and KFH Capital, Goldman Sachs International.
Several other financial firms have been identified as inactive bookrunners in addition to the active ones. These include Abu Dhabi Commercial Bank, POCI Asia Limited, Emirates NBD Capital Limited, MUFG, SMBC Nikko, Alinma Investment, Albilad Capital, Sharjah Islamic Bank, Mizuho, and Natixis.
Aramco elucidated that SA Global Sukuk Limited’s sukuk offers will constitute direct, unsubordinated, unsecured, and limited recourse obligations. Saudi Aramco plans to use the net profits for regular corporate operations. In compliance with the laws and regulations of the jurisdictions in which the offering will be made, the trust certificates will only be made available to qualified investors.
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