Riyadh – Mubasher: The Saudi Basic Industries Corporation (SABIC) on Tuesday has said that its subsidiary SABIC Capital II B.V. is planning to issue dollar-denominated Eurobonds that will be unsecured by assets.
The issue value will be specified based on the market conditions, according to a SABIC’s statement to the Saudi Stock Exchange (Tadawul).
Set to be implemented in accordance with the Rule 144A/Reg S offering requirements under the US Securities Act of 1933, the issue aims to refinance some of SABIC's and its units’ commitments.
“The stabilisation rules of the Financial Conduct Authority (FCA) and the International Capital Market Association (ICMA) will also apply to the issuance," the statement added.
On a related note, the bonds will be listed on the Irish Stock Exchange (Euronext Dublin).
SABIC Capital II B.V. appointed BNP Paribas and Citigroup Global Markets Limited as global coordinators alongside HSBC Bank plc, Mitsubishi UFG Securities EMEA plc and Standard Chartered Bank as joint lead managers.
On Monday, 24 September, Moody's Investors Service assigned A1 instrument rating to the planned senior unsecured notes to be issued by SABIC Capital II B.V. and SABIC with a stable outlook.
SABIC last reported an 80.59% profit surge, reaching SAR 6.7 billion in the second quarter of 2018, compared to SAR 3.71 billion during Q2-17.
The Saudi firm's profits increased 36.47% to SAR 12.2 billion in H1-18, from SAR 8.94 billion during H1-17.
By 11:37 am Saudi time, SABIC’s stock rose 2.45% to SAR 125.40.
