Riyadh – Mubasher: State-owned Saudi Aramco has appointed banks to arrange its multi-tranche debut dollar bond issue, Reuters reported on Monday.

The issuance is expected to finance the oil giant’s acquisition of a stake in the Saudi Basic Industries Corporation (SABIC), the world’s fourth largest petrochemicals producer, in a $69.1 billion deal revealed last week.

Saudi Aramco plans to pay 50% of the acquisition value at the closing of the SABIC deal, while the rest will be paid within two years from internal liquidity and other potential sources, according to a presentation reviewed by Reuters. 

The bond issue will be about $10 billion in size, the kingdom’s oil minister said.  

The world’s largest international oil firm was rated A1 by Moody’s and A+ by Fitch.

The bond maturities are expected to range between three to 30 years, according to a document issued by one of the banks arranging the deal.

Saudi Aramco will start on Monday a bond investor roadshow in Singapore, London, Hong Kong, Tokyo, New York, Los Angeles, Boston, and Chicago.

The oil giant appointed JP Morgan and Morgan Stanley as joint global coordinators and as bookrunners along with Citigroup, Goldman Sachs, HSBC, and NCB Capital.

The bonds, planned to be listed on the London Stock Exchange (LSE), are forecast to obtain ratings of A1 by Moody’s and A+ by Fitch, the document added.