Sabic completes $2bn bond issuance

07 October 2018
A total of 10,000 bonds, or sukuk, with a par value of $200,000 each were issued to institutional investors

State-owned Saudi Basic Industries Corporation (Sabic) has completed the issuance of $2bn-worth of international bonds, after becoming the owner of a 24.99 per cent stake in Swiss chemicals firm Clariant in January.

The bonds, which were issued by Netherlands-based Sabic Capital II BV, are senior notes unsecured by assets, Sabic said in a filing to the Riyadh Stock Exchange.

A total of 10,000 bonds, or sukuk, with a par value of $200,000 each were issued to institutional investors.

The bonds will be listed on the Irish Stock Exchange (Euronext Dublin).

Those maturing in five years have a 4 per cent rate of return, while a 4.5 per cent rate applies to bonds with a 10-year maturity.

Sabic Capital II BV engages in financing and investments for Sabic subsidiaries in Europe, Asia and the Americas.

The global coordinators of the Sabic bond issuance were BNP Paribas and Citigroup Global Markets; with HSBC Bank, Mitsubishi UFG Securities EMEA and Standard Chartered Bank as joint lead managers.

Fixed-income investor meetings for the bond issue were held in London, New York, Los Angeles and Boston from 25 September.

In September, Sabic said it was collaborating with Clariant to form a new high-performance materials unit.

Sabic is now the single-biggest shareholder of Clariant.

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