Advanced Theory & Practice of Bonds

Recognized under IBF-FTS | 7-8 June 2022 | 12 CPD Hours

Comprehensive 2-day course on bonds designed for private bankers, wealth managers and advisors.

Aramco raised $6bn via a debut Sukuk triple-trancher. It raised:

  • $1bn via a 3Y sukuk at a yield of 0.946%, 35bp inside initial guidance of T+105bp area
  • $2bn via a 5Y sukuk at a yield of 1.602%, 35bp inside initial guidance T+125bp area
  • $3bn via a 10Y sukuk at a yield of 2.694%, 35bp inside initial guidance of T+160bp area

The sukuk have expected ratings of A1/A, and received orders over $55bn, 9.2x issue size. The 3Y and 5Y sukuk have a one-month par call while the 10Y has a three-month par call. Aramco chose to issue Islamic bonds over conventional bonds due to high demand for the instrument as a result of the low number of Gulf dollar Sukuk sales this year, a source told Reuters. The new 3Y was priced at a new issue premium of ~19bp over their 2.875% bonds due Apr 2024 yielding 0.76%. The new 5Y and 10Y were priced 34bp and 25bp wider to their 1.625% bonds due Nov 2025 and 2.25% bonds due Nov 2030 that yield 1.26% and 2.44% respectively.

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