SABIC closes $2 bln debt offering

Saudi Basic Industries Corporation’s (SABIC) wholly-owned subsidiary, SABIC Capital II B.V., has closed a $2 billion bond issue, the petrochemical giant said in a bourse filing today.

SABIC offered 10,000 senior and unsecured bonds, priced at $200,000 each.

The bonds will have five-year and ten-year tenors, maturing on Oct. 10, 2023 and Oct. 10, 2028, respectively.

The five-year tenor bonds will have a yield of 4 percent. Meanwhile, the ten-year tenor bonds will offer a yield of 4.50 percent.

The bonds will be listed on the Irish Stock Exchange (Euronext Dublin).

Proceeds of the issuance will go toward refinancing some financial liabilities of SABIC and its affiliates.

The world’s fourth-largest petrochemicals company picked BNP Paribas and Citi as global coordinators for the planned debt issue, along with HSBC, MUFG and Standard Chartered as joint lead managers.