Aramco plans to sell $10bn international bond to support SABIC acquisition

Saudi Aramco is in negotiations to buy 70% of SABIC from the kingdom’s Public Investment Fund, which will cost about $70bn.

Khalid Al-Falih, Saudi Arabia’s energy minister.
Khalid Al-Falih, Saudi Arabia’s energy minister.

Saudi Aramco is planning to hit the market in Q2-2019, promoting its first international bond.

Saudi Aramco may tap the bond market for about $10bn to help fund the acquisition of SABIC, according to Khalid Al-Falih, the energy minister of Saudi Arabia, as reported by Bloomberg.

According to the Bloomberg report, Saudi Arabia will decide in the next few weeks about the size of the proposed bond, though the offering would not be huge. “It will be probably in about the 10 billion range,” the Bloomberg report quoted Al-Falih.

According to earlier reports, Saudi Aramco is in talks to buy 70% of SABIC from the Public Investment Fund of Saudi Arabia, which will cost approximately $70bn.

The issue of international bonds will necessitate Saudi Aramco to disclose its accounts to the investors for the first time since the company’s nationalisation four decades ago, and may also have to make public details about its oil reserves and operations.

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