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