Thursday 13 September 2018

After Shelving Biggest-Ever IPO, Can Saudis Pull Off a Mega Bond? - Bloomberg

After Shelving Biggest-Ever IPO, Can Saudis Pull Off a Mega Bond? - Bloomberg:

Two months after Saudi Arabia pulled a share sale that could have raised $100 billion for its sovereign wealth fund, the kingdom faces a tough sell in convincing bond investors to pick up the tab.

Saudi financial engineers are cooking up a plan to raise as much as $70 billion for the Public Investment Fund by having state oil giant Aramco buy PIF’s entire stake in sister company Sabic. That could include a bond sale the likes of which the world has never seen.

Problem is, this year’s selloff in emerging markets has sent borrowing costs surging and new debt issuance has dried up, with offerings down 14 percent from last year.

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