Monday, Sep 26, 2011
RIYADH(Zawya Dow Jones)--Saudi Aramco Total Refining and Petrochemical Co., or Satorp, has set initial price guidance for its planned Islamic bond, or sukuk, at 6 month Saudi interbank offered rate, or SAIBOR, plus 95-105 basis points, one of the lead managers of the offering said Monday.
The subscription period for the offering will last until October 1, Deutsche Securities Saudi Arabia said on its website. The total sukuk size could go up to 3.75 billion Saudi riyals ($1 billion).
Satorp, a company that is 62.5% owned by Aramco and 37.5% owned by France's Total S.A. (TOT), is building a 400,000 barrel-a-day export refinery in Jubail, which is expected to be fully operational by the fourth quarter of 2013.
The refinery complex, estimated to cost about $14 billion to build, is part of a drive by the world's top oil exporter to boost refining capacity by more than 1.7 million barrels a day from installed capacity of 2.1 million barrels a day now.
Last month, the company said it selected three banks to arrange a planned Islamic bond, or sukuk, issue for Saudi investors that will help it finance the complex. Deutsche Securities Saudi Arabia, Samba Capital and Saudi Fransi Capital were chosen as joint lead managers and joint bookrunners for the sukuk.
The Islamic bond is the first shariah-compliant project sukuk instrument in the Arab world's largest economy.
-By Summer Said, Dow Jones Newswires; +966-546-842373; summer.said@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
26-09-11 1329GMT
