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| Saudi Aramco Total Refining and Petrochemical Co (Satorp), said yesterday its refinery complex at Jubail on the Gulf coast is expected to be fully operational in the fourth quarter of next year. “The oil in the first topping unit is scheduled for mid-December, 2012,” Satorp said on its website. “Following that, all of the different units will come on stream one by one until the refinery is finally in steady-state of operations by mid-fourth quarter 2013.” Satorp, a company that is 62.5% owned by Aramco and 37.5% owned by France’s Total, is building a 400,000 bpd export refinery in Jubail |
The sukuk, open only to Saudi investors, will be issued by Saudi Aramco Total Refining and Petrochemical Co (Satorp) to help finance the Jubail refinery project. The company got regulatory approval for the issue in August.
“It’s up to 3.75bn riyals. Its been offered in Saudi riyals only to Saudi entities, could be less, but you can’t exceed 3.75bn riyals,” Usman Sikandar, director and co-head of investment banking at Saudi Fransi Capital told Reuters at an investor presentation.
He added that the sukuk would mature about 11 years after completion of the refinery, expected in December 2013.
Deutsche Securities Saudi Arabia, Samba Capital and Saudi Fransi Capital were appointed joint lead managers and joint bookrunners for the sukuk.
“This is a very good project, its a secure project, the sponsors are guaranteeing this, so the risk factor is very low and its a good investment and there’s a lot of cash in the kingdom,” Fawwaz Nawwab, Satorp chief executive told reporters. The total estimated cost of the refinery is $14bn, Satorp executives said.
Bankers said final pricing for the sukuk - which will be calculated on the basis of 6-month Saudi interbank offered rate (Saibor) - would be released on September 28.
Final allocations are due to be completed on October 3, with settlement expected on October 8.