Saudi Arabian Oil is marketing a US dollar dual-tranche sukuk deal at initial price thoughts of Treasuries plus 120bp area for a five-year tranche and 135bp area for a 10-year tranche.

SA Global Sukuk is the issuer of the 144A/Reg S senior notes, while Saudi Aramco is the obligor.

The sukuk will be rated A1/A+ (Moody's/Fitch), in line with the obligor's rating.

Al Rajhi Capital, Citigroup, Dubai Islamic Bank, First Abu Dhabi Bank, Goldman Sachs International, HSBC, JP Morgan, KFH Capital and Standard Chartered are joint active bookrunners, while Abu Dhabi Commercial Bank, Albilad Capital, Alinma Investment, BOC International, Emirates NBD Capital, Mizuho, MUFG, Natixis, Sharjah Islamic Bank and SMBC Nikko are joint passive bookrunners.

First Abu Dhabi Bank, HSBC and Standard Chartered are sukuk structure agents.

The proceeds will be used for general corporate purposes.

Source: IFR