Aramco prices de­but sukuk in US$10b fund-rais­ing plan

New Straits Times - - Business -

DUBAI: Saudi Ara­bian Oil Co (Aramco) set fi­nal pric­ing for its de­but Is­lamic bond as the com­pany presses ahead with plans to raise US$10 bil­lion (RM44.2 bil­lion) in debt, ac­cord­ing to a per­son with knowl­edge of the mat­ter.

Aramco was sell­ing debt with a seven-year ten­ure in a pri­vate place­ment at 25 ba­sis points over the coun­try’s in­ter­bank of­fered rate, said the peo­ple.

It was seek­ing to raise about US$2 bil­lion in its de­but sale of Is­lamic bonds un­der a 37.5 bil­lion riyal (RM44.2 bil­lion) sukuk pro­gramme, said the peo­ple.

The oil gi­ant was sell­ing debt ahead of an ini­tial pub­lic of­fer­ing next year as the coun­try’s fi­nance min­istry planned to cut tax­a­tion on the group, po­ten­tially rais­ing its val­u­a­tion to more than US$1 tril­lion, ac­cord­ing to es­ti­mates by San­ford C. Bern­stein & Co.

The cut would boost Aramco’s net in­come by 300 per cent, putting per-bar­rel in­come in a range sim­i­lar to that of in­ter­na­tional oil com­pa­nies, said Bern­stein an­a­lysts. Bloomberg

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