Sabic will begin marketing the deal on 3 May for 10 days.
HSBC and Calyon Saudi Fransi will act as joint lead arrangers and bookrunners on the deal. The sharia advisory board of Sabb’s Islamic arm Amanah has approved the sukuk. The tenor of the deal, denominated in local currency to attract regional investors, will be five years.
The deal will be Sabic’s third sukuk, following deals in July 2006 and August 2007, as it tries to diversify its funding sources. Sabic is rated A+ by Standard & Poor’s.