By Rebecca Melvin
Concord, N.H., June 14 – Saudi Arabian Oil Co. (Aramco) detailed its $6 billion three-part Islamic bond, or sukuk, issue (A1//A), which was sold under Rule 144A and Regulation S and was free to trade on June 10.
SA Global Sukuk Ltd. was issuer of the senior securities with Aramco as obligor.
The company sold $1 billion of three-year notes at par with a profit rate of 0.946% and yield spread of Treasuries plus 65 basis points. The pricing was low to guidance in the Treasuries plus 70 bps area and initial price talk in the Treasuries plus 105 bps area.
The $2 billion of five-year notes priced at par with a 1.602% profit rate and yield spread of Treasuries plus 85 bps, which was low to guidance in the Treasuries pus 90 bps area and initial talk in the 125 bps area.
The $3 billion tranche of 10-year notes also priced at par for a profit rate of 2.694% and yield spread of Treasuries plus 120 bps, which was low to guidance in the Treasuries plus 125 bps area and initial price talk in the Treasuries plus 160 bps area.
The order books at the time guidance was released were in excess of $55 billion with a skew to the long tranche.
The notes have a change-of-control put and one-month par call for the shorter-dated paper and a three-month par call for the 10-year notes.
The joint sukuk structuring agents are First Abu Dhabi Bank, HSBC and Standard Chartered Bank.
Alinma Investment Co., Al Rajhi Capital, BNP Paribas, Citigroup, First Abu Dhabi Bank, Goldman Sachs International, HSBC, JPMorgan, Morgan Stanley, NCB Capital, Riyad Capital, SMBC Nikko and Standard Chartered Bank are the active bookrunners.
The passive bookrunners are Abu Dhabi Commercial Bank, Albilad Capital, AlJazira Capital, Alistithmar Capital, ANB Invest, BOC International, Credit Agricole CIB, Dubai Islamic Bank, Emirates NBD Capital, Saudi Fransi Capital and Societe Generale CIB.
The issuer is a Saudi Arabian state-owned oil company.
| Issuer: | SA Global Sukuk Ltd.
|
| Guarantor: | Saudi Arabian Oil Co. (Aramco)
|
| Amount: | $6 billion
|
| Securities: | Senior sukuk
|
| Active bookrunners: | Alinma Investment Co., Al Rajhi Capital, BNP Paribas, Citigroup, First Abu Dhabi Bank, Goldman Sachs International, HSBC, JPMorgan, Morgan Stanley, NCB Capital, Riyad Capital, SMBC Nikko and Standard Chartered Bank
|
| Passive bookrunners: | Abu Dhabi Commercial Bank, Albilad Capital, AlJazira Capital, Alistithmar Capital, ANB Invest, BOC International, Credit Agricole CIB, Dubai Islamic Bank, Emirates NBD Capital, Saudi Fransi Capital and Societe Generale CIB
|
| Trade date: | June 10
|
| Settlement date: | June 17
|
| Issuer ratings: | Moody's: A1
|
| Fitch: A
|
| Distribution: | Rule 144A and Regulation S
|
|
|
| Three-year notes
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| Amount: | $1 billion
|
| Maturity: | June 17, 2024
|
| Profit rate: | 0.946%
|
| Price: | Par
|
| Yield: | 0.946%
|
| Spread: | 65 bps over Treasuries
|
| Price talk: | Guided to area of 70 bps over Treasuries and IPT of area of 105 bps over Treasuries
|
|
|
| Five-year notes
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| Amount: | $2 billion
|
| Maturity: | June 17, 2026
|
| Profit rate: | 1.602%
|
| Price: | Par
|
| Yield: | 1.602%
|
| Spread: | 85 bps over Treasuries
|
| Price talk: | Guided to area of 90 bps over Treasuries and IPT of area of 125 bps over Treasuries
|
|
|
| 10-year notes
|
| Amount: | $3 billion
|
| Maturity: | June 17, 2031
|
| Profit rate: | 2.694%
|
| Price: | Par
|
| Yield: | 2.694%
|
| Spread: | 120 bps over Treasuries
|
| Price talk: | Guided to area of 125 bps over Treasuries and IPT of area of 160 bps over Treasuries
|
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