What Sukuk Issuers Can Learn From Aramco's Pricing of Fixed Income Instruments

The $100 billion-plus of orders that Aramco’s generated for its maiden $12 billion bond sale will be also remembered as the issuance that was marketed by WallStreet celebrities and bankers. It is indeed the ““one-of-a-kind emerging markets deal”. But at the same time, Sukuk issuers can learn how to rely on your internal debt capital market team to price your issuance at the fair value rather than putting money on the table (for investors).

Wider positive effect to GCC debt capital market

Almost all the Saudi (sovereign) yields (including its sukuk issuance) have registered their lowest in more than a year. It means that the cost of borrowing for sovereigns and corporates will be much lower than before. Aramco has brought the sovereigns yields down with it....