Saudi's Arabian Drilling Co. raises $533mln from its first sukuk issue

The transaction attracted large demand from various investor groups. Final order booked reached more than SAR5.5 billion which allowed the company to increase the issuance size from its original plan of less than SAR1.6 billion to SAR2 billion.

The demand also allowed the Sukuk pricing to land at Sibor+1.60 percent which was the low end of price guidance for 5-years tenor.

HSBC Saudi Arabia acted as Lead Coordinator of the transaction whereas HSBC Saudi and Fransi Capital were the joint lead managers for the issuance. Riyad Capital was appointed as the Sukuk holders’ agent and payment administrator 

“ADC has an established strong name in the oil industry for many years. The Sukuk issuance was mainly designed to expand the awareness of ADC impressive operational and financial track record to the wider market. The current conditions in the energy market is ideal for growth opportunities and such Sukuk financing will allow ADC to continue its journey to comfort its position as a leading national and future regional player in its field,” Ali Alghamdi, managing director administration of Arabian Drilling Company commented.

Established in 1964, Arabian Drilling Company is a joint stock company owned by Schlumberger and Taqa which is 45 percent owned by PIF. ADC is specialized in onshore and offshore drilling and owns a fleet of 45 active rigs.