UPDATE 1-Saudi’s SABIC Capital plans benchmark bond in Q2

* To be registered in London

* Latest in flurry of Saudi debt issues

(Adds roadshow details and background)

By Souhail Karam

RIYADH, May 17 (BestGrowthStock) – SABIC Capital, affiliated to
petrochemicals giant Saudi Basic Industries Corp (2010.SE: )
(SABIC), plans a benchmark dollar bond issue before the end of
June, a senior executive told Reuters on Monday.

Ratings agency Moody’s assigned the bond an A+ rating on
Monday and said it understood it would be used to refinance or
repay debt at SABIC Innovative Plastics Holding, the renamed GE

SABIC Innovative Plastics raised $1.5 billion from a bond
issue in August 2007.

“The benchmark bond is for general corporate purposes. The
roadshow starts on May 20 in London and if we like the prices we
will go ahead with it,” SABIC’s chief financial officer Mutlaq
al-Morished said.

The bond will be registered in London.

SABIC Capital was established in 2008 to look after the
financing and tax operations of SABIC’s investments in Europe
and the United States after the acquisition of DSM
Petrochemicals and GE Plastics.

The bond roadshow will stop in Munich, Frankfurt, Geneva and
Zurich on May 21, in Abu Dhabi and Dubai on May 23, Singapore on
May 24 and Hong Kong on May 25, Morished said.

IFR, a unit of Thomson Reuters, reported that HSBC, JP
Morgan and Royal Bank of Scotland had been mandated for the bond

Between July 2006 and May 2008, state-controlled SABIC
raised 16 billion riyals ($4.27 billion) from three Islamic bond
issues. It raised two billion riyals in December 2009 from a
private bond placement.

Saudi firms are leading a gradual recovery in regional debt
markets after Dubai’s government in March unveiled a $9.5
billion support plan for conglomerate Dubai World [DBWLD.UL],
which rattled markets in November with news it would ask for a
standstill on some of its debt.

Earlier this month, state-controlled Saudi Electricity Co
(5110.SE: ) raised 7 billion riyals from a 7-year Islamic bond, or
sukuk, at 95 basis points above Saudi Interbank Offered Rate
(Sibor). [ID:nLDE6490QZ]

A typical benchmark bond issue is for a minimum $500
million. SABIC said that it has to repay 5.54 billion riyals in
long-term loans in 2010 and 11.26 billion riyals in 2011.

Investing Advice

(Additional reporting by Bakyt Azimkanov in London; Editing
by David Cowell)
($1 = 3.750 riyals)

UPDATE 1-Saudi’s SABIC Capital plans benchmark bond in Q2