Dubai: Kuwait’s Equate Petrochemical has set initial price thoughts for a two-part US dollar-denominated bond that is expected to be sold on Thursday, according to a document from the lead arrangers.
The company’s initial guidance for a long five-year bond was at the low end of 200s basis points over midswaps, while price thoughts for a ten-year debt tranche were in the high 200s to 300 basis points over midswaps.
Both portions of the bond — which is structured to allow investors from the US to buy the paper — will be of benchmark size, traditionally understood to mean upwards of $500 million (Dh1.8 billion), while the company is still evaluating the possibility of adding a 30-year tranche, the document added.
Citi, HSBC, JP Morgan, and NBK Capital are the joint lead managers and they are bookrunners together with Banca IMI, Mizuho Securities, MUFG, and SMBC Nikko.
Equate is a joint venture between Dow Chemical and Kuwait’s Petrochemical Industries Company (PIC).
