(Adds details on timeline, size expectations)
By Davide Barbuscia
DUBAI, April 4 Saudi Aramco (IPO-ARMO.SE) has
extended the bookbuilding process for its debut local currency
sukuk by one day beyond the original deadline of April 3,
sources familiar with the matter said on Tuesday.
The books are expected to close on Tuesday, with final
allocations likely to take place on Wednesday, said a banker
working on the deal.
The reason behind the extension is that some accounts needed
extra time to obtain internal approval before placing their
orders. The size of the deal is likely to be between $2 billion-
and $4 billion-equivalent, the banker added.
The sukuk is Aramco's first attempt to diversify its funding
sources in an era of low international oil prices. The oil
giant, which Saudi officials have valued at over $2 trillion, is
preparing to sell up to 5 percent of its shares in an initial
public offer expected to take place in 2018.
Aramco started gathering orders for its debut sukuk - part
of a 37.5 billion riyal ($10 billion) programme - on March 27, a
document issued by the banks leading the transaction showed.
According to the original timeline, the last date for orders
and allocations was expected to be April 3, with settlement
expected on April 9.
The floating rate Islamic bond has a seven-year maturity and
offers 25 basis points over the six-month Saudi Arabian
Interbank Offered Rate (SAIBOR).
Alinma Investment, HSBC Saudi Arabia, NCB Capital and Riyad
Capital are the joint lead coordinators. They are joined by GIB
Capital, Samba Capital and Saudi Fransi Capital in dealer roles.
($1 = 3.7500 riyals)
(Editing by David Evans)