Sabic Capital, affiliated to petrochemicals giant Saudi Arabia Basic Industries Corporation (Sabic), has mandated five banks to arrange a $2 billion, five-year loan, banking sources said on Wednesday.

The five co-ordinators are Bank of Tokyo-Mitsubishi UFJ, Citi, SMBC, ING and Mizuho, one of the sources said.

The financing is expected to carry a sub-50 basis points (bps) over LIBOR margin and an all-in spread of less than 100 bps, sources previously told Thomson Reuters Loan Pricing Corporation.

Syndication is expected to close before the summer period. Sabic was not immediately available for comment.

Sabic Capital was established in 2008 to look after the financing and tax operations of Sabic's investments in Europe and the United States after the acquisition of DSM Petrochemicals and GE Plastics.

Sabic is 70 per cent owned by the government of Saudi Arabia and makes chemicals, fertilise, plastics and metals used in paint, rubber, textiles, leather, cleaning products, glass, food and other consumer industries.-Reuters