Aramco, Total to issue Sukuk for refinery

22 February 2010

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.

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