SABIC plans SR 10bn private bond sale to fund expansions

30 December 2009 16:37  [Source: ICIS news]

HOUSTON (ICIS news)--SABIC did not immediately comment on Wednesday on an agreement signed with Saudi Arabia’s Public Investment Fund (PIF) for its first private bond placement in which it plans to raise Saudi riyal (SR) 10bn ($2.67bn, €1.87m).

The bonds will have seven-year maturities, and will help “raise financing performance, boost competitiveness and contribute to achieve the company’s expansion strategy,” the Saudi Arabia-based international petrochemicals and plastics major said in a statement.

The company is seeking to triple its petrochemical output to 130m tons/year by 2020 through the building of additional plants as well as acquisitions due to anticipated higher demand for its products, according to reports.

The PIF offers funding for commercial projects and play a significant role in developing the Saudi Arabia economy, according to its website.

($1 = SR3.75, $1 = €0.70)

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By: Ben DuBose
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