The bond issue is intended to give Aramco multiple sources of capital.
Thursday 10, January 2019 BY KUDAKWASHE MUZORIWA
Saudi Arabia’s energy minister has announced that Aramco will issue bonds in the second quarter of 2019, reported Reuters.
Khalid al-Falih, Saudi’s Energy Minister said that the bonds issue is likely to be in US dollars and the issuance is not linked to the potential acquisition of a stake in petrochemicals firm SABIC.
The oil giant is said to be considering issuing bonds to help finance its planned acquisition of a controlling stake in petrochemical maker SABIC.
The acquisition of a controlling stake in SABIC involves the purchase of nearly all of the 70 per cent stake held by the Public Investment Fund (PIF) in the petrochemicals maker. That implies a deal value of roughly $70 billion, though the acquisition price has not been made public yet.
Aramco is working with JP Morgan and Morgan Stanley on the SABIC acquisition.