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Saudi Aramco to issue bonds in Q2 2019, list in 2021 - energy minister

Reuters  |  RIYADH 

By Rania El Gamal

RIYADH (Reuters) - will issue bonds in the second quarter of 2019, Saudi Arabia's minister said on Wednesday.

The Saudi has considered issuing bonds to help finance its planned acquisition of a controlling stake in

The deal is expected to involve the purchase of all or nearly all of the 70 percent stake in held by the Public Investment Fund (PIF), the kingdom's top sovereign wealth fund. That implies a deal value of roughly $70 billion, though the acquisition price has not been made public yet.

Minister said Aramco will release its financials and reserves when it issues the planned bonds, which will be denominated in US dollars, but added that the expected bond issuance is not linked to the acquisition.

"The bond issue is intended to give Aramco multiple sources of capital," Falih told reporters.

"With or without the SABIC transaction a company the size of Aramco - its capital program and its capital spend is going to be from $40 to $50 billion a year - it's very prudent they have access to the capital market."

Aramco is working with and on the SABIC acquisition, sources previously told

The two banks, along with others, were working on the planned stock market listing of Aramco before the plan to list the company and offer a 5 percent stake to other investors was pulled last year.

Falih said on Wednesday that the state will be listed by 2021.

The valuation of Aramco would depend on the market but petroleum reserves would be one of the bases for establishing its value, he said.

(Reporting by Rania El Gamal; writing by Davide Barbuscia; Editing by Edmund Blair, and Alexandra Hudson)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Wed, January 09 2019. 23:24 IST