UPDATE 1-Aramco picks banks for SABIC debt financing – source


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FILE PHOTO: Logo of Saudi Aramco is seen at the 20th Middle East Oil & Gas Show and Conference (MOES 2017) in Manama, Bahrain, March 7, 2017. REUTERS/Hamad I Mohammed/File Photo

DUBAI (Reuters) – Saudi Aramco has selected banks to arrange its first international debt sale which will help it finance the acquisition of a stake in Saudi Arabian Basic Industries Corp (SABIC), a source familiar with the matter said on Thursday.

The state oil giant has picked a group of banks including JPMorgan, Morgan Stanley, Citi and HSBC, the source said, with JPMorgan and Morgan Stanley working as “joint global coordinators”.

JPMorgan declined to comment. Aramco and the other banks were not immediately available 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 last month.

The oil giant could borrow as much as $50 billion from international investors to fund 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.

JPMorgan and Morgan Stanley, along with other banks, 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.

Reporting by Hadeel Al Sayegh; Writing by Davide Barbuscia; Editing by Muralikumar Anantharaman


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