Font Size

- Aa +

Mon 11 Oct 2010 05:40 PM

Font Size

- Aa +

Saudi Aramco,Total eye $1 bln sukuk for Jubail

Sukuk is related to financing of a venture to build a 400,000 bpd crude refinery in Jubail

Saudi Aramco,Total eye $1 bln sukuk for Jubail
SUKUK ISSUE: State-owned Saudi Aramco and Frances Total will launch a $1bn Islamic bond in Q4. (Reuters)

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

sukuk.

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

capacity.

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

investors.

In June, Saudi Aramco and Total said they had completed an

$8.5 billion financing for the refinery from multiple

sources. (Reuters)