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Bankers Seek $ 70 Billion Financing Potential to Support the Giant Oil Company Acquisition # Saudi Aramco A Majority Interest in Saudi Basic Industries Corporation [19659002] According to the Reuters news agency, bank sources did not specify their nature .
Aramco to Acquire a Majority Interest in # SABIC Owned by the Public Investment Fund, the largest sovereign wealth fund in the country, up to 70% [19659002] ].
SABIC's market capitalization in Saudi Arabia, the fourth largest petrochemical company in the world, reached 385.2 billion riyals
Reuters has already published a selection signed by JP Morgan and # Morgan Stanley 19659002] to advise on the transaction .
Bankers conduct internal discussions about the possible need for Aramco to finance external debt, which can take the form of bonds or loans. Sources say that Aramco has not yet sent a request for proposals from its lenders. "Nothing has happened yet, but all the banks are reviewing it ."
Significant debt financing was boosted by potential loans to the Middle East, which declined by only $ 4.4 billion in the second quarter. "US investment banks, the three Japanese banks, all French banks, some German banks and many Middle Eastern banks, including Saudi banks, and Middle Eastern banks, You will want to lend as much as possible . "
Amin Al-Nbader, CEO of the oil company, said Aramco said earlier in an interview with Al Arabiya that the acquisition was taking time and effort, and that 39; it was not easy to determine the moment of its conclusion.It is still being negotiated. [SABIC] which was noted A1 – A and + A stated in May that he was planning to refinance an external debt of $ 500,000. about $ 2 billion by October. Bankers say that it is unlikely that a possible change of ownership will alter these plans .
The company has a $ 1 billion worth of bonds maturing on October 3 and has appointed banks to obtain international bonds. SABIC received a US $ 1 billion fixed-term loan due July 18. The company is expected to use withdrawals from a US $ 2 billion revolving credit facility to repay the loan until refinancing is completed worth $ 2 billion. "We discuss various things with SABIC," says a fourth banker. " . .
We do not really agree on the purpose of the funds .Finance loan to 2013 through a union, and the interest rate of the loan was 50 basis points above LIBOR.The revolving credit facility was activated in December 2015 at an interest rate of 25 basis points over the LIBOR
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