Saudi Aramco Total Refining and Petrochemical Company (SATORP) has issued its debut sukuk. As per sources, the SATORP bond issue was 3.5 times oversubscribed. The Saudi Capital Markets Authority (CMA) in August approved the public offering of sukuk certificates by Arabian Aramco Total Services Company (AATSC), the special purpose company which is issuing the sukuk certificates on behalf of SATORP. The final pricing on SATORP's public offering of SR-denominated sukuk certificates has been set at 6-month SAIBOR (Saudi Arabian Interbank Offered Rate) plus a margin of 95 basis points (bps) per annum.
According to a statement from Saudi Fransi Capital, one of the three joint lead managers and joint bookrunners for the transaction together with Deutsche Securities Saudi Arabia and Samba Capital & Investment Management Company "the aggregate face amount of SATORP's public offering of SR-denominated certificates (the sukuk) will be SR3,749,900,000 and the net proceeds of the offering will be the aggregate face amount after deducting the fees of the joint lead managers and joint bookrunners for the offering."
The offering, sale and delivery of the three-year SR3.75 billion sukuk, which matures in 2014, is limited solely to Saudi nationals and those other legal persons with a permanent establishment in the Kingdom holding a current commercial registration number issued by the Ministry of Commerce and Industry.
Proceeds of the sukuk will be used to finance SATORP's planned 400,000 bpd crude oil refinery in Jubail, which will process Arabian Heavy Crude. SATORP is 62.5% owned by Saudi Aramco and 37.5% owned by Total S.A. The total cost of the project is estimated at over US$13 billion, and may involve further Islamic finance facilities down the line.
The refinery is scheduled to be commissioned in 2013 and will include production of diesel and jet fuels; 700,000 tpa of paraxylene; 140,000 tpa of benzene; and 200,000 tpa of polymer-grade propylene.