DAMMAM – Saudi Aramco Total Refining and Petrochemical Co. (Satorp), said Sunday its Islamic bond, or sukuk, issue was 3.5 times oversubscribed with a final offering size of SR3.75 billion ($1 billion).
The floating rate sukuk will have a tenor of about 14 years, the firm said in a statement. It was offered at six-month Saudi interbank offered rate, or SAIBOR, plus 95 basis points.
Satorp, a company that is 62.5 percent owned by Aramco, and 37.5 percent owned by France’s Total S.A., is building a 400,000 barrel-a-day export refinery in Jubail, which is expected to be fully operational by the end of 2013. The refinery complex, estimated to cost about $14 billion to build, is part of a drive by the world’s top oil exporter to boost refining capacity. – Agencies