+1-888-308-5802     
News Contact Us

Saudi Aramco to issue bonds to finance the acquisition of SABIC

Author : Saif Ali Bepari | Published Date : 2019-01-13 

* The petroleum & natural gas company is considering issuing bonds in order to finance the company’s acquisition of SABIC.

* The deal would involve the acquisition of nearly all or all of the 70% stake in SABIC.

Saudi Aramco, the Saudi Arabian national petroleum & natural gas company, has reportedly announced that it intends to issue bonds in the second half of 2019 to help the company finance its planned acquisition of SABIC.

Reports cite, the deal would involve the acquisition of nearly or all of the 70% controlling stake in the Saudi petrochemical manufacturing company currently held by the nation’s sovereign wealth fund, Public Investment Fund of Saudi Arabia. According to a report by Reuters, though the financial details related to the acquisition have not been unveiled yet, the deal could be valued at approximately $70 billion. The Saudi Arabian petroleum & gas company is working along with Morgan Stanley & JP Morgan on the acquisition of the petrochemical company.

The two banks were working on a planned stock-market listing of Saudi Aramco along with others before the plan to list the firm & offer a 5% stake to other investors was cancelled last year.

Sources with knowledge of the matter claim that the state-owned oil giant is expected to be listed on the market by 2021. The Saudi Aramco valuation would be based upon the market; however, petroleum reserves would also be one of the factors that would help establish the company’s value.

Energy Minister of Saudi Arabia, Khalid al-Falih stated that the issue of the bonds intends to give the company several sources of capital. Falih further stated that without or with the SABIC acquisition, a company of the size of Aramco needs access to the capital market as its capital spend & capital program is going to be $40 to $50 billion annually.

According to reports, further details regarding the scheduled deadline of acquisition of SABIC has not been unveiled yet.

About Author

Saif Ali Bepari

Saif Ali Bepari

A qualified Computer Science graduate, Saif Ali Bepari, armed with more of an inclination toward writing than coding, commenced his journey in the content industry as a freelancer. Currently penning down content for fractovia.org and a couple of other portals, Saif has also tinkered with creative writing, technical writing, blog writing, and copywriting. He can be contacted at- [email protected] | https://twitter.com/Saif_B17

Related News

Amazon extends anti-counterfeit Transparency program beyond U.S.

Published Date: 2019-07-12         Author: Saif Ali Bepari

Amazon has recently announced that it is expanding the Transparency program, an initiative to address counterfeit problems in e-commerce, to India, Canada and Europe. Transparency is aimed at serializing products with a T-shaped QR type code to help in the identification of a counterfeit item. Vi... Read More

ABB to build collaborative robotic solutions for healthcare automation

Published Date: 2019-07-11         Author: Saif Ali Bepari

ABB has recently announced that it will launch collaborative robots for medical laboratories, with the opening of a new healthcare hub at Houston-based Texas Medical Center (TMC) facility. Apparently, the innovation center will be the firm’s first dedicated healthcare research center and is se... Read More

Wahoo buys The Sufferfest to expand home training systems portfolio

Published Date: 2019-07-09         Author: Saif Ali Bepari

Reports confirm that Wahoo, a fitness-tech company, has announced the acquisition of The Sufferfest, a leading home training brand established by David McQuillen in 2008. Apparently, Wahoo, a connected fitness device leader, is known for the Kickr turbo trainers, the Elemnt computer family and Ti... Read More

© 2019 Fractovia. All Rights Reserved