SABIC to raise $9bn to finance GE Plastics deal

04 June 2007 09:26  [Source: ICIS news]

By Jeanne Lim

 

SINGAPORE (ICIS news)--Saudi Basic Industries Corp (SABIC) plans to raise $9bn (€6.7bn) from loans and the sale of bonds with a group of lenders to help it finance its purchase of GE Plastics, a company official said on Monday.

 

SABIC, the world’s largest chemicals maker by market value, would borrow the money by the third quarter of the year and about 25% of it would be in bonds, he said.

 

The lenders, comprising Citigroup, HSBC Holdings, ABN Amro Holding and GE Capital, would underwrite SABIC’s loans and bonds, he said.

 

JPMorgan Chase might also join the group, the spokesman added.

 

SABIC said on 21 May it would pay $11.6bn in cash for GE Plastics to gain products and operations in the US, Asia and Europe.

 

The polycarbonate (PC) technology and experience it acquired from GE Plastics will help SABIC to expand its own production base in Saudi Arabia. It is planning a 260,000 tonne/year PC facility there to target the Asian market.

 

The PC facility is part of the Kayan Petrochemical project, where SABIC has a 35% stake. Kayan, part-owned by SABIC, is setting up a $10bn industrial complex on Saudi Arabia's Gulf coast.

 

($1 = €0.74)

 

By: Jeanne Lim
+65 6780 4359

< previous article(VIDEO - ICIS news Europe Lunchtime Bulletin 27 October 2009)

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly