Aramco, Total to issue Sukuk for refinery

Saudi Aramco and Total have appointed Deutsche Bank, Samba Financial Group and Calyon to sell sukuks to help fund the construction of a $12bn oil refinery, Bloomberg has reported, citing two bankers familiar with the transaction. The joint-venture is also discussing the possibility of issuing an international conventional bond after raising funds from the Islamic market as the companies seek to reduce dependence on short-term bank financing, one source said. The companies aim to start operations at the 400,000 barrels-a-day refinery in 2013 and plan to sell 25% of the venture to the public in a share sale.