Saudi Arabia is maintaining its position as the region’s top bond issuer, with Saudi Aramco announcing initial price thoughts on Wednesday for its US dollar-denominated five- and ten-year Reg S Islamic bonds.
The five-year sukuk is indicated at around 105 basis points over US Treasuries, while the ten-year note is guided at around 115 basis points.
Aramco holds long-term credit ratings of Aa3 (stable) from Moody’s and A+ (stable) from Fitch. The ijara/murabaha sukuk structure is also expected to carry the same ratings in line with the issuer.
The Islamic bonds will carry a fixed semi-annual profit rate and are planned to be listed on the London Stock Exchange.
Bookrunners on the deal include Al Rajhi Capital, Citi, Dubai Islamic Bank, First Abu Dhabi Bank, Goldman Sachs International, HSBC, J.P. Morgan, KFH Capital, and Standard Chartered Bank.
First Abu Dhabi Bank, HSBC, and Standard Chartered Bank are acting as structuring agents for the transaction.
The deal will be subject to ICMA/FCA stabilisation.
Earlier this year in May, Aramco raised USD 5 billion through a three-tranche dollar bond sale, including USD 1.5 billion five-year notes at 80 bps, USD 1.25 billion ten-year notes at 95 bps, and a USD 2.25 billion 30-year tranche at 155 bps.
