DUBAI, Oct 2 (Reuters) - Saudi Basic Industries Corp has tightened price guidance for its planned U.S. dollar bond issue to 125 basis points over U.S. Treasuries for a five-year tranche and 165 bps over for a 10-year tranche, according to a bank document seen by Reuters.
SABIC, rated A1 by Moody’s and A-(minus) by S&P, is planning to issue the 144A/Regulation S bonds through SABIC Capital II B.V, a special purpose vehicle.
It received orders of $5.5 billion, the document showed.
Earlier on Tuesday it started marketing the five-year bonds with initial price guidance of around 140 bps over the benchmark and the 10-year bonds with a guidance of around 180 bps over.
Proceeds from the debt sale will be used to repay outstanding debts to third parties, according to a document sent to investors by one of the banks arranging the deal and seen by Reuters.
BNP Paribas, Citi, HSBC, MUFG and Standard Chartered Bank have been hired to arrange the deal. (Reporting by Davide Barbuscia; Editing by Andrew Torchia)