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.