Allen & Overy (A&O) and Khoshaim & Associates (K&A) have advised the arrangers and dealers on the establishment of a SAR37.5 billion domestic sukuk issuance programme for Saudi Aramco and its debut issuance of SAR 11.25 billion sukuk due 2024 thereunder.  

The issuance represents the debut capital markets issuance by Saudi Aramco, the national oil company of Saudi Arabia, widely viewed as one of the world’s most valuable companies. The sukuk was issued through a special purpose vehicle, Saudi Aramco Sukuk Company, which was established as a joint stock company in Saudi Arabia.

Alinma Investment Company, HSBC Saudi Arabia Limited, NCB Capital Company and Riyad Capital were appointed as joint lead co-ordinators, arrangers and dealers and GIB Capital L.L.C., Samba Capital & Investment Management Company and Saudi Fransi Capital Limited were appointed as dealers.  All seven banks acted as joint lead managers of the issuance.  

The team advising the arrangers and dealers on the establishment of the programme and the joint lead managers on the issuance was led by A&O capital markets partner Bilal Ahmad and from K&A, managing partner Zeyad Khoshaim and senior associate Hosam Ghaith, who led the structuring and coordination with the banks, and they were supported by associate Mashael Alshebaiky and trainee associate Rawan AlBrikeit.

A separate team advised Riyad Capital as sukukholders’ agent led by A&O partner Morgan Krone, senior associate Chris Angus, associate Ian Convey, and K&A associate Abdulaziz AlAlami.

Bilal Ahmad commented:  “This programme gives Saudi Aramco an efficient platform to raise Saudi Riyal denominated funding and serves as a useful introduction for future capital markets financings. We were delighted to be appointed to advise on this important transaction.”

Zeyad Khoshaim added:  “This was a strategically important transaction for Saudi Aramco – its debut capital markets financing; the transaction showcases the strength of the Saudi Arabian regulatory framework and depth of market.”