Sabic, Al Hilal said to start bond meetings as Fed delays taper

Saudi Basic Industries Corp hired banks for what would be the petrochemicals makers’ first dollar bond sale since 2010 and Al Hilal Bank was said to start investor meetings as the Federal Reserve refrained from cutting stimulus, people familiar with companies’ plans said.

By (Bloomberg)

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Published: Fri 20 Sep 2013, 10:22 AM

Last updated: Tue 7 Apr 2015, 4:54 PM

Sabic enlisted Citigroup Inc, HSBC Holdings, Mizuho and Royal Bank of Scotland Group to arrange meetings with investors from next week, three people familiar with the matter said. The company may sell dollar-denominated notes, the people said, asking not to be identified because the information is private. Abu Dhabi government-owned Al Hilal will gauge investor appetite next week for a debut sale of Islamic bonds during similar meetings, according to three people.

Yields on the benchmark 10-year US Treasury note fell 16 basis points, the biggest drop since 2011, to 2.69 per cent after the Fed refrained from reducing the $85 billion pace of monthly securities buying. Economists had estimated the Federal Reserve would taper its bond buying by $10 billion to $75 billion, according to the median of 34 responses in a Bloomberg News survey of economists.

“It seems that all issuers want to profit from this window,” Montasser Khelifi, a Dubai-based senior manager for global markets at Quantum Investment Bank, said in e-mailed comments. “All the issuances that they have kept on the shelves for the last month will reappear again.”

Yields on the benchmark 10-year Treasury note climbed to as much as 2.99 per cent on September 5 from 1.93 per cent on May 21, the day before Fed Chairman Ben Bernanke said the US may scale back its bond-buying program. Sabic may sell Reg S, senior guaranteed notes subject to market conditions, according to the people. Al Hilal’s investor meetings will be arranged by Citigroup, HSBC, National Bank of Abu Dhabi, Standard Chartered and itself, they said.

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