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SABIC to issue five year bond worth over USD1 billion

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September 27
6:00 AM 2013

The world's largest petrochemicals manufacturer in terms of market value, Saudi Basic Industries Corp., had set a five year bond issue at a total volume of USD1 billion last Thursday. The move was in response to the high investor demand for a rare dollar-pegged debt offer from a Saudi Arabian company.

This is the company's first bond market issuance since 2010 and had attracted commitments from investors to a volume worth USD5.25 billion. This was according a document issued by lead managers released earlier. 

The level of demand had allowed the pricing for the deal to be changed twice last Thursday, initially pegging the rate at 155 basis points, plus or minus bps over its equivalent US Treasuries. It was recalculated at 130 bps over the same benchmark with the initial pricing guidance at 150 bos or over at trading.

The proceeds of the deal, with its attached a 2.625% coupon with a reoffer price pegged at USD99.559, would be used to pay outstanding debt and finance its US operations. 

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