Saudi Aramco Total Refining and Petrochemical Company (SATORP) announced the launch of its public offering of sukuk certificates by Arabian Aramco Total Services Company (AATSC), a company especially established for the purpose of issuing the Sukuk on behalf of SATORP. The total offering size will be determined at a later stage by SATORP. Investor communication for the offering and the offering period will last for a period of sixteen (16) working days, with a group event roadshow on Tuesday. SATORP has appointed Deutsche Securities Saudi Arabia, Samba Capital & Investment Management Company and Saudi Fransi Capital as Joint Lead Managers and Joint Bookrunners. The proceeds of the issue of the sukuk will be contributed by AATSC to the Musharaka and will be used to provide finance for, and procure the construction and delivery of two petrochemical tank farms as part of the development of the SATORP refinery project, a project sponsored by Saudi Aramco and Total to build a 400,000 bpd refining and petrochemical complex, to be located in Jubail Industrial City. The sukuk issuance is expected to be offered to financial institutions, mutual funds, insurance companies and pension funds as well as individuals, who will be able to subscribe to the Sukuk subject to the subscription terms and conditions. The offering, sale and delivery of the sukuk 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. The sukuk will be a floating rate sukuk and will have a tenor of approximately 14 years, subject to determination of amortization commencement per fixed schedule. The investors will receive an expected return of 6 month SAIBOR plus a margin per annum to be distributed semi-annually. The sukuk will be the first Shariah-compliant project sukuk instrument in Saudi Arabia. The Shariah structure of the sukuk has been approved by the Shariah Boards of Al Inma Investment Company, Bank Al-Bilad, Deutsche Bank, Samba Financial Group and Credit Agricole CIB.
