The Saudi Basic Industries Corp. (SABIC) yesterday said that it plans to issue Saudi Arabia’s first major domestic corporate bond next year, worth up to SR1 billion ($267 million), to help finance its global expansion.
SABIC Vice-President for Petrochemicals Coordination Homood Al-Tuwaijri told Reuters that the bond will be within the SR1 billion range, and that SABIC should be in a position to issue the bond in the year 2005.
Speaking at a petrochemicals conference in Dubai, Tuwaijri said that preparations are at an advanced stage and predicted strong local interest in the bond. “There is considerable appetite in the domestic market for SABIC assets,” he said.
SABIC is also investigating getting a credit rating, so that it will have the option of borrowing on international markets. “We are working diligently to establish access to a variety of funding sources, so that an international bond issue is something SABIC ought to be able to access in the future,” Tuwaijri said.
Tuwaijri added that SABIC has also approved a SR24 billion budget for projects to be completed within Saudi Arabia by 2008.
Source: SPA
