Sources: “Aramco” raises $3 billion from issuing international dollar-denominated sukuk

Saudi oil giant Aramco raised $3 billion from issuing international dollar-denominated sukuk in two tranches, the second time it has tapped debt markets this year with expectations of paying large cash dividends.

Two informed sources said that “Aramco” sold on Wednesday five-year sukuk worth $1.5 billion at a yield of 85 basis points over US Treasuries and ten-year sukuk worth $1.5 billion at a yield of 100 basis points over the same benchmark, which is higher than the previously announced indicative price due to strong demand.

Reuters reported on Tuesday that the company seeks to raise up to $3 billion from the sukuk offering.

In July, “Saudi Aramco” raised $6 billion from a three-tranche bond issue after a three-year hiatus from the debt market.

The company had issued sukuk in 2021 at the same value.

The sukuk issuance comes as Saudi Aramco pumps about 9 million barrels of oil per day, which is 25% below its production capacity. The company expects to pay cash dividends worth $124.3 billion in 2024.