Saudi state petroleum firm Aramco has invited proposals from banks for its planned first ever US bond and international loan with the aim of raising finance for Aramco’s planned acquisition of 70% of state-led petchems giant Sabic currently held by sovereign wealth fund PIF. The request for proposals is intended to lead to the appointment of bookrunners and also to test the lending appetite for a potential bridge facility for the Sabic buy-in, according to Bloomberg citing sources familiar with the matter.

Although Aramco has not revealed the size of the bond, the fact that 70% of Sabic’s equity is worth around $65-70bn at market valuations suggests that it could potentially dwarf a $7.5bn sovereign issuance by the Saudi government earlier this month. Minister of Energy Khalid al-Falih says that the bond, which will be issued in the second quarter, “is not going to be anywhere near the number that has been rumored,” which is likely a reference to the $70bn figure (MEES, 11 January). (CONTINUED - 165 WORDS)