Aramco's sukuk issue 7x oversubscribed: Report

Logo of Saudi Arabian Oil Co. (Saudi Aramco) 

Saudi Arabian Oil Co. (Saudi Aramco) raised around $3 billion through sukuk sales in the international market, marking its first Islamic bond issuance since 2021, Bloomberg reported, citing sources.

The company received bids exceeding $22 billion, resulting in an oversubscription of more than seven times, according to sources.

The yield on the sukuk decreased by 35 basis points (bps) from the initial guidance for both the five-year and 10-year tranches during the sale.

Short-term sukuk were sold at 85 bps above US Treasury yields, while long-term sukuk were priced at a 100-bps increase.

According to data available with Argaam, Saudi Aramco started the issuance of international sukuk on Sept. 24, under the SA Global Sukuk Limited's Trust Certificate Issuance Program.

The company said the net proceeds will be used for general corporate purposes.