Saudi Aramco likely to raise $6 bln from sukuk issue today: report

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Saudi Aramco is expected to raise $6 billion from its dollar-denominated Islamic bond sale (sukuk) by the end of today, as orders rose from $33 billion to $55 billion, Reuters reported, citing a document.

Pricing guidance on the sukuk tightened to around 70 basis points (bps) over US Treasuries (UST) for a three-year tranche, around 90 bps over UST for a five-year tranche and around 125 bps over UST for a ten-year tranche.
 

Initial guidance was set around 105 bps over UST for the three-year bonds, around 125 bps over UST for the five-year notes and around 160 bps over UST for the ten-year tranche.
 

 The Saudi oil giant launched on Monday its first US dollar-denominated sukuk, which will be issued in three tranches. The deal will consist of three, five and ten-year tranches, according to Argaam's data.
 

Saudi Aramco received subscription orders of more than $30 billion for its international dollar-denominated sukuk, Reuters reported.

Subscription to the sukuk issue will close on June 17, 2021.