Saudi Aramco launches dollar sukuk with $200k minimum as debt push widens

11/09/2025 03:40 AST

Saudi Aramco has launched a new international sukuk offering, with a minimum subscription of $200,000, as the state oil giant seeks to re-tap global debt markets.

The sukuk, issued under SA Global Sukuk Ltd.'s Trust Certificate Issuance Program, will be dollar-denominated and constitute direct, unsubordinated, unsecured, and limited-recourse obligations, according to a filing on the Saudi Exchange.

The subscription period runs from Sept. 10-17, with the size, pricing, maturity, and return to be set subject to market conditions. Investors may participate in increments of $1,000 beyond the $200,000 minimum.

Aramco plans to use proceeds for general corporate purposes, in line with its broader strategy of sustaining financial flexibility and operational efficiency. The securities are aimed at qualified institutional investors in the jurisdictions where they are marketed.

The sale comes after the company filed a fresh sukuk prospectus with the London Stock Exchange in May, giving it time to tap markets. That move followed a $5 billion three-part conventional bond deal earlier this year.

According to the filing, Al-Rajhi Capital, Citi, Dubai Islamic Bank, and First Abu Dhabi Bank are acting as active joint bookrunners, alongside Goldman Sachs, HSBC, J.P. Morgan, KFH Capital, and Standard Chartered.

The passive bookrunners are Abu Dhabi Commercial Bank, Albilad Capital, and Alinma Capital, together with Bank of China, Emirates NBD Capital, Mizuho, MUFG, Sharjah Islamic Bank, and SMBC.

The filing said the targeted class of investors refers to institutions, specifically qualified investors in jurisdictions where the offering is made, in accordance with local regulations. This framework ensures the sukuk complies with both international standards and Shariah principles while remaining accessible only to large-scale market participants.

The latest issuance comes less than a year after Aramco raised $3 billion through a two-tranche sukuk in October, which drew six times oversubscription. That sale included a $1.5 billion tranche due in 2029 at 4.25 percent and another $1.5 billion tranche due 2034 at 4.75 percent.

Aramco, the world's biggest oil exporter, has been returning to global debt markets to diversify funding, expand its investor base, and re-establish a sukuk yield curve, marking its first such steps since 2021.

The latest offering is expected to further expand Aramco's investor base and strengthen its sukuk yield curve.

Arab News