Saudi Aramco, officially the Saudi Arabian Oil Company, is planning to issue a $10 billion bond in order to fund its $69.1 billion acquisition of Saudi Basic Industries Corp. (SABIC) as soon as next week, the Wall Street Journal reported on Thursday.
The bond, the first debt issuance by the world’s largest oil company, will reportedly be used for a down payment on the SABIC purchase, with the remaining amount being paid in installments over time, sources told media.
The issuance may provide some data on the financial performance of the Aramco ahead of its initial public offering, as Chairman Khalid al-Falih previously said the company will release data on its financial health and oil and gas reserves as part of bond detail.