Riyadh — Mubasher: State-run Saudi Aramco is scheduled to meet this week to approve a bond issuance scheme that will help finance a potential acquisition of a strategic stake in Saudi Basic Industries Corporation (SABIC), according to industry sources.
The world’s top oil producer is to issue its first US dollar-denominated Eurobonds in the second quarter of 2019, while the issuance volume will probably be around $10 billion, Reuters reported on Monday, citing the sources.
Aramco’s representatives are projected to launch a bond roadshow for fixed-income investors in April, two sources familiar with the matter told the London-based news agency.
The proceeds of the Saudi oil giant’s debt notes are forecast to be injected into purchasing all or nearly all of the 70% stake in the kingdom’s petrochemicals maker held by the Public Investment Fund (PIF).
Although the acquisition price has not been announced yet, the move implies a deal value of roughly $70 billion, according to Reuters.
Aramco’s board also will also approve the 2018 financial results for the company, expected to include the bond prospectus along with the firm’s oil and gas reserves.
