$1bn Saudi Islamic bond on the cards

12 October 2010
State-owned Saudi Aramco and France's Total will launch a $1 billion Islamic bond, or sukuk, in the fourth-quarter, for their joint venture in the kingdom, a banker at a lead arranger said yesterday.

The sukuk is related to the financing of a venture between the oil majors to build a 400,000 barrels per day (bpd) crude refinery in Jubail, on the Gulf coast.

"The long-delayed $1 billion sukuk, which was part of the financing for the Jubail refinery, will launch in the fourth-quarter," Simon Eedle, global head of Islamic banking at Credit Agricole, said.

Credit Agricole, Deutsche Bank and Samba Financial Group are the lead arrangers for the sukuk.

The Jubail refinery, 62.5 per cent owned by Saudi Aramco and 37.5 per cent by Total, is scheduled to begin operating in 2013, and is among the new plants planned by Saudi Arabia, the world's top oil exporter, as it looks to boost domestic refining capacity.

© Bahrain Tribune 2010

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