Bloomberg/Simon Dawson


Saudi Aramco's board to approve SABIC bond

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The state-owned oil giant’s representatives are expected to meet fixed-income investors in a bond roadshow in April.

Monday 11, March 2019 BY KUDAKWASHE MUZORIWA

Saudi Aramco's board is set to meet this week in Saudi Arabia where it will approve a bond issuance plan that will likely help finance a potential acquisition of a strategic stake in SABIC.

Khalid al-Falih, the Saudi Energy Minister, said that Aramco plans to issue its first international bonds in the second quarter of 2019 and the planned issuance will probably be around $10 billion.

The acquisition is expected to involve the purchase of the Public Investment Fund’s 70 per cent stake in SABIC, which implies a deal value of around $70 billion although the price has not been made public yet.

Aramco hired a consortium of international lenders including Goldman Sachs, JPMorgan as well as Morgan Stanley, Citi and HSBC and to help arrange the planned bonds.

Additionally, Saudi’s National Commercial Bank will also be part of a group of banks appointed to arrange the planned bonds, reported Reuters.

TAGS : Saudi Aramco, SABIC, PIF, Bond issuance , IPO

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