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Bankers are looking for potentially significant funding of $ 70 billion to support the acquisition of Saudi Aramco through a majority stake in Saudi Basic Industries Corporation (SABIC).
Saudi Aramco Aspires to Acquire a Majority Interest In Saudi Basic Industries Corporation (SABIC), which produces petrochemicals, Aramco plans to buy the stake held by the Public Investment Fund, the largest sovereign wealth fund in the world. Saudi Arabia, whose share in SABIC is about 70%.
The Business Market (SABIC), the world's fourth largest petrochemical company with a financial value of 385.2 billion rupees ($ 103 billion) The acquisition of 70% of the company will cost about 70 billion US dollars
The Reuters news agency reported that the selection had been signed by JPMorgan and Morgan Stanley to give their opinion on the case.
A number of bankers hold internal discussions about the possibility that Saudi Aramco may need financing of external debt may take the form of loans or bonds.
Saudi Aramco has not yet sent a request for proposals from its lenders, as one banker said: "Nothing has happened yet, but all the banks are looking at it."
The debt contract is based on the fact that the investment fund "Who is the selling party and will ensure that cash is provided for the financing of the acquisition, which means that Saudi Aramco will have to raise funds in advance rather than repay them in the long run.
One banker said: The money in advance, perhaps repayable in agreed installments, may include a loan
It should be noted here that it is very difficult to obtain information on this agreement, because those who lead these negotiations are the Crown Prince of Saudi Arabia, Prince Mohammed bin Salman ben Abdelaziz Al Saud
An important "loan debt" in the Middle East, which only decreased by $ 4.4 billion in the second quarter of 2018, the lowest quarterly total since 2004, particularly in the second quarter.
Aramco Saudi Arabia in 2016 has the int ention to launch a first year of the plan and conduct during the year 2018, and aims to collect m More than 100 billion dollars from a new sovereign wealth fund
The introduction the stock market was delayed until the new year 2019 at a minimum, which means that the banks badociated with Saudi Aramco should finance SABIC
Another banker reportedly quoted US investment banks, three Japanese banks , all French banks, some German banks and many Middle Eastern banks, including Saudi banks. You will want to lend as much as you can.
Another banker announced: If Ka "There is an agreement that will be very cheap, and a double-digit price If we do not have more work, why would we lend too cheap?"
Saudi Aramco's CEO, Amin Al-Nbader, announced the acquisition of SABIC
The Saudi public investment fund can receive up to 70 billion dollars from the sale of its participation in SABIC, which gives it sufficient funds to start projects. Development and infrastructure to work to strengthen the Kingdom's ambition to carry out
Has been SABIC announced its A1 + A-A1 rating and announced in May 2018 that it "expects" to recapitalize an external debt of $ 2 billion by next October. "
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