Sabic plans US$2.7 billion bond sale to Saudi fund
Source: BI-ME and Bloomberg , Author: BI-ME staff
Posted: Tue December 29, 2009 9:48 pm
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SAUDI ARABIA. Saudi Basic Industries Corp., the world’s largest petrochemical maker known as Sabic, plans to raise SAR10 billion (US$2.7 billion) in a private placement of bonds to the government-run Public Investment Fund reported Bloomberg, citing a company statement.

The seven-year notes will help finance the company’s expansion plans, the Riyadh-based petrochemical maker said in a statement on the Saudi bourse Website today. Sabic signed an agreement with the Public Investment Fund for the bond issue, according to the statement.

Sabic wants to triple its petrochemical production to 130 million tons by 2020 by building plants and acquiring facilities as the company prepares for higher demand for its products. Sabic’s bond issue will be the biggest since June when Saudi Electricity Co., the state-controlled power producer, raised 7 billion riyals by selling five-year Islamic bonds.

The Public Investment Fund, set up by a royal decree, provides financing for projects that are of a commercial nature and are having a significant importance in developing the national economy, according to information available on the Ministry of Finance website.

 

MIDDLE EAST BUSINESS COMMENT & ANALYSIS

date:Posted: January 31, 2015
QATAR. In the end, monetary policy can be powerful in the short-term but is unlikely to change the long-term predicament of the Euro Area. The ECB may succeed in preventing prolonged deflation from taking hold, but this is a not a sufficient condition for sustainable growth.
date:Posted: January 30, 2015
INTERNATIONAL. Western politicians wishing to see a genuine resolution of Iran's nuclear crisis must continue with diplomatic efforts to isolate those among the Iranian rulers who wish for the collapse of the negotiations.
date:Posted: January 30, 2015
SAUDI ARABIA. Often businesses will seek to explore the market through a partner or a third party with which employees are placed and through which they seek to operate in the Kingdom.
QATAR. In the end, monetary policy can be powerful in the short-term but is unlikely to change the long-term predicament of the Euro Area. The ECB may succeed in preventing prolonged deflation from taking hold, but this is a not a sufficient condition for sustainable growth.
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