DUBAI (Reuters) - Saudi Aramco intends to pay for its $69.1 billion acquisition of a majority stake in Saudi Basic Industries Corp’s (SABIC) in separate tranches, according to a presentation given by Aramco to bond investors that was seen by Reuters.
The world’s biggest oil producer intends to pay 50 percent of the acquisition price at the closing of the SABIC deal, while the remainder will be paid over a two-year period from internal cash generation and, potentially, other sources, according to the document.
Aramco this week will meet global bond investors ahead of its first international bond sale after obtaining its first credit ratings from Moody’s and Fitch.
The SABIC acquisition will have no impact on Aramco’s rating, according to the investor presentation.
Reporting by Davide Barbuscia, editing by Louise Heavens