SABIC plans USD-denominated bond issue

Saudi Basic Industries Corporation’s (SABIC) wholly-owned subsidiary, SABIC Capital II B.V., plans to issue senior, unsecured USD-denominated bonds, the petrochemical giant said in a bourse filing.

"No price talk has yet been offered," SABIC said, indicating that the value of the bond issue will be determined in line with the market conditions. The issue proceeds will go for refinancing some financial liabilities of SABIC and its affiliates.

The world’s fourth-largest petrochemicals company has picked BNP Paribas and Citi as global coordinators for the planned debt issue, along with HSBC, MUFG and Standard Chartered as joint lead managers. They will arrange a series of investor meetings in London, New York, Los Angeles and Boston, as of today.

Qualified investors are entitled to subscribe to the planned notes, which is subject to the regulatory approvals.

Yesterday, Moody's Investors Service assigned an A1 instrument rating to the proposed new senior unsecured notes that will be issued by SABIC Capital II BV. It also affirmed SABIC's A1 long-term issuer rating and A1 senior unsecured ratings of SABIC Capital I BV and SABIC Capital II BV, adding that the outlook on all ratings remain stable.