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SATORP launches its first Sukuk


Saudi Aramco Total Refining and Petrochemical Company (SATORP) launched its first public offering of a Sukuk which will help finance part of its refinery project.

The total offering size will be determined at a later stage by SATORP. The Sukuk issuance is expected to be offered to financial institutions, mutual funds, insurance companies and pension funds as well as Saudi nationals, who will be able to subscribe to the Sukuk subject to the subscription terms and conditions.

SATORP has appointed Deutsche Securities Saudi Arabia, Samba Capital & Investment Management Company and Saudi Fransi Capital as Joint Lead Managers and Joint Bookrunners.

The Sukuk will be run by Arabian Aramco Total Services Company (AATSC), a company especially established for the purpose of issuing the Sukuk on behalf of SATORP.

The money 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. The project is sponsored by Saudi Aramco and Total to build a 400,000 bpd refining and petrochemical complex, to be located in the Jubail Industrial City on the east coast of the Kingdom.

The Sukuk will be the first Shariah compliant project sukuk instrument in the Kingdom. 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.