Aramco picks banks for SABIC debt financing

By Hadeel Al Sayegh

DUBAI, Feb 14 (Reuters) - Saudi Aramco has selected banks to arrange its first international debt sale which will help it finance the acquisition of a stake in Saudi Arabian Basic Industries Corp (SABIC), a source familiar with the matter said on Thursday.

The state oil giant has picked a group of banks including JPMorgan, Morgan Stanley, Citi and HSBC, the source said, with JPMorgan and Morgan Stanley working as "joint global coordinators".

Aramco, the world's top oil producer, plans to issue its first international bonds in the second quarter of 2019, likely worth about $10 billion, Saudi Energy Minister Khalid al-Falih said last month.

The oil giant could borrow as much as $50 billion from international investors to fund the purchase of all, or nearly all, of the 70 percent stake in SABIC held by the Public Investment Fund (PIF), the kingdom's top sovereign wealth fund.

JPMorgan and Morgan Stanley, along with other banks, were working on the planned stock market listing of Aramco before the move was put on hold.

Aramco's new planned listing date is 2021, Saudi officials have said.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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