Aramco reportedly seeks advisers for SABIC Debt Financing

By Davide Barbuscia and Hadeel Al Sayegh
Thursday, January 24, 2019

Saudi Aramco is seeking advisers to arrange debt financing needed for the acquisition of a stake in Saudi Arabian Basic Industries Corp (SABIC), banking sources familiar with the matter said on Thursday.

The Saudi oil giant could borrow as much as $50 billion from international investors to fund the acquisition, sources previously told Reuters.
A request for proposals was sent on Wednesday and banks are expected to make submissions by Monday, one of the sources said.

Aramco declined to comment.

Aramco, the world’s top oil producer, plans to issue its first international bonds in the second quarter of 2019, likely worth about $10 billion, Saudi Energy Minister Khalid al-Falih said this month. The bond issuance could help finance the SABIC acquisition.

Aramco is looking for advisers for an international bond issue and bank financing, one of the sources said.

The debt is needed to back the purchase of all, or nearly all, of the 70 percent stake in SABIC held by the Public Investment Fund (PIF), the kingdom’s top sovereign wealth fund.

That implies a deal value of roughly $70 billion.

Aramco is working with JP Morgan and Morgan Stanley on the stake purchase, sources previously told Reuters.

The two banks, along with others, were working on the planned stock market listing of Aramco before the move was put on hold. Aramco’s new planned listing date is 2021, Saudi officials have said. 

(Reuters reporting by Davide Barbuscia and Hadeel Al Sayegh; Editing by Jane Merriman and Dale Hudson)

Categories: Energy

Related Stories

BP, ONGC, Reliance Industries Ink Deal for Offshore Exploration in India

PTTEP Buys Chevron's Hess Unit Share of Southeast Asia’s Offshore Block for $450M

China Starts Production at Major Oil Field in Bohai Sea

Seatrium Makes First Turnkey FPSO Delivery to Petrobras

Baker Hughes, Petronas Team Up for Asia-Pacific Energy Resilience

Woodside Finds South Korean Partners to Advance LNG Value Chain

Valeura Makes Progress with Multi-Well Drilling Campaign in Gulf of Thailand

Four Jack-Up Drilling Rig Deals Set to Bring In $129M for Borr Drilling

Yinson Production Secures $1.17B Refinancing for FPSO Maria Quitéria

Petrovietnam, Partners Sign PSC for Block Off Vietnam

Current News

BP, ONGC, Reliance Industries Ink Deal for Offshore Exploration in India

Allseas-Boskalis Consortium Bags $1.4B Offshore Gas Pipeline Job in Taiwan

CNOOC Brings New Offshore Gas Field On Stream

Yinson, PTSC Get $600M Contract for Vietnam-Bound FSO

PTTEP Buys Chevron's Hess Unit Share of Southeast Asia’s Offshore Block for $450M

Valeura Energy, PTTEP Partner Up on Gulf of Thailand Blocks

Sapura Scoops Over $118M for Chevron, PTTEP Subsea Ops off Thailand

Pandion Energy Divests Interests in Three Norwegian Assets to Inpex

China Starts Production at Major Oil Field in Bohai Sea

Dutch Contractor Completes Malaysia’s Largest 'Rig-to-Reef' Decom Project

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com