Riyadh – Mubasher: State-owned Saudi Aramco has appointed banks to arrange the issuance of its first international bonds, sources told Reuters on Thursday.

Proceeds from this bond issuance will be used to finance Aramco’s acquisition of a majority  stake in the Saudi Basic Industries Corporation (SABIC).

The banks appointed by Aramco include Tadawul-listed National Commercial Bank (NCB), HSBC, Citi, Morgan Stanley, and JP Morgan, the sources added, noting that Morgan Stanley and JPMorgan were chosen as joint international coordinators.

In January, banking sources told Reuters that the world’s largest international oil firm was seeking advisers to mandate a loan for its planned acquisition of a stake in SABIC.

Last year, Aramco said it was eyeing the Saudi Public Investment Fund’s (PIF) 70% stake in SABIC. This potential acquisition has so far put Aramco’s widely-anticipated initial public offering (IPO) on hold.