The Arabian Drilling Co., a Saudi-based drilling company, has successfully raised SAR2 billion ($533 million) from the local debt market.
The transaction attracted large demand from various investor groups.
The final order booked amounted to 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 Saudi Interbank Offered Rate (Sibor) 1.6%, which was the minimum pricing range in a five-year period.
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 enjoyed a solid reputation in the oil industry for many years,” said Ali al-Ghamdi, managing director administration of Arabian Drilling Company.
“The Sukuk issuance was mainly designed to expand the awareness of ADC impressive operational and financial track record to the wider market,” he added.
Established in 1964, the Arabian Drilling Company is a joint stock company owned by Schlumberger and Taqa, which is 45% owned by PIF.
ADC is specialized in onshore and offshore drilling and owns a fleet of 45 active rigs.
