Sukuk is related to financing of a venture to build a 400,000 bpd crude refinery in Jubail
State-owned Saudi Aramco and
France's Total will launch a $1 billion Islamic bond,
or sukuk, in the fourth quarter, for their joint venture in the
kingdom, a banker at a lead arranger said on Monday.
The sukuk is related to the financing of a venture between
the oil majors to build a 400,000 barrels per day (bpd) crude
refinery in Jubail, on the Gulf coast.
"The long delayed $1 billion sukuk, which was part of the
financing for the Jubail refinery, will launch in the fourth
quarter," Simon Eedle, global head of Islamic banking at Credit
Agricole, said at a conference.
Credit Agricole, Deutsche Bank and
Samba Financial Group are the lead arrangers for the
The Jubail refinery, 62.5 percent owned by Saudi Aramco and
37.5 percent by Total, is scheduled to begin operating in 2013,
and is among the new plants planned by Saudi Arabia, the world's
top oil exporter, as it looks to boost domestic refining
Last year, it was estimated that the Jubail refinery could
cost more than $12 billion and funding for the project may
include an Islamic bond portion to meet demand from Saudi
In June, Saudi Aramco and Total said they had completed an
$8.5 billion financing for the refinery from multiple