Saudi chemicals giant Sabic taps bond market for $1bn

Saudi chemicals giant Sabic taps bond market for $1bn

Saudi Basic Industries Corp. (SABIC), the chemical maker in which Saudi Arabia's state oil company holds a majority stake, is raising $1bn in the biggest corporate dollar bond offering from the Middle East this year.

The company is selling $500m of 10-year notes at an initial price talk of 190 basis points over midswaps, according to a person familiar with the matter.

It also is offering $500m of 30-year securities at an initial yield of 3.375 per cent, the person said, asking not to be identified because they're not authorised to speak publicly about it.

Saudi Arabia is seeking to diversify its economy away from petroleum by building new industries, and expanding chemical output to sell higher-value hydrocarbon products is part of that strategy.

Saudi Aramco, the world's largest oil