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Saudi Aramco’s five-year and 10-year Islamic bonds were in high demand, with each orderbook exceeding $8 billion ahead of its pricing.
The five-year $1.5 billion sukuk was priced at 99.318, with a coupon rate of 4.125% and a yield of 4.278% at 70 basis points (bps) over US Treasuries.
Meanwhile, the 10-year $1.5 billion Islamic bond was priced at 99.389, with a coupon rate of 4.625% and a yield at 4.830% at 80 bps over US Treasuries.
Earlier, the five-year sukuk was priced at Treasuries plus 105 bps area, and the 10-year sukuk at 115 bps area.
The orderbook for the five-year bond exceeded $8.25 billion, excluding JLM interest at launch. The 10-year issuance saw the final orderbook exceeding $8.6 billion.
The oil giant is rated Aa3 by Moody's (stable outlook) and A+ by Fitch (stable outlook), with the ijara/murabaha structure expected to be rated Aa3 by Moody’s and A+ by Fitch, in line with the issuer’s ratings.
The Reg S senior unsecured sukuk has a settlement date of September 17.
The bonds will be listed on the London Stock Exchange Main Market.
Al Rajhi Capital Company, Citi, Dubai Islamic Bank, First Abu Dhabi Bank, Goldman Sachs International, HSBC, JP Morgan, KFH Capital, and Standard Chartered Bank are the active bookrunners, while Abu Dhabi Commercial Bank, Albilad Capital, Alinma Capital, Bank of China, Emirates NBD Capital, Mizuho, MUFG, Sharjah Islamic Bank and SMBC were named Passive Joint Bookrunners.
First Abu Dhabi Bank, HSBC, and Standard Chartered Bank were named structuring agents.
In May, the Saudi Aramco raised $5 billion through a three-tranche dollar-denominated bond issuance.
While its five-year debt sale was priced at $1.5 billion with a spread set at 80 bps, the 10-year deal at $1.25 billion with a spread of 95 bps, and the 30-year note at $2.25 billion with a spread of 155 bps.
(Writing by Bindu Rai, editing by Brinda Darasha)
