Saudi Aramco Set for Mega Debt Deal

Saudi Aramco plans to acquire SABIC for $70 billion, partially funded by a $10 billion bond. The acquisition aims to help the Saudi government diversify its economy by building a sovereign wealth fund. Banks are eager to participate, hoping to secure roles in Aramco's potential IPO, which could value the company at up to $2 trillion. Despite Aramco's profitability, investors are cautious due to its financial ties to the Saudi government, which include high taxes and dividends.

Why does Saudi Aramco need to raise $10 billion from the international bond market?

• To fund its daily operations

• To acquire SABIC

• To invest in renewable energy

• To pay off existing debts

What is the primary reason for the Saudi government to sell SABIC to Saudi Aramco?

• To increase oil production

• To build a sovereign wealth fund

• To privatize the petrochemical industry

• To reduce its national debt

What is the expected valuation of Saudi Aramco's potential IPO?

• $2 trillion

• $500 billion

• $3 trillion

• $1 trillion

Why are banks like Morgan Stanley and JP Morgan interested in the Saudi Aramco deal?

• To diversify their investment portfolios

• To gain experience in the petrochemical industry

• To support the Saudi government's economic plans

• To secure a role in the upcoming IPO

What is a major concern for investors regarding Saudi Aramco?

• Its lack of international presence

• Its low profitability

• Its declining oil reserves

• Its dependence on the Saudi government