Saudi Aramco taps banks for $12-14 bln gas pipeline loan – sources
Saudi Aramco brand is pictured on the oil facility in Abqaiq, Saudi Arabia October 12, 2019. REUTERS/Maxim Shemetov
DUBAI, Oct 11 (Reuters) – Saudi Aramco has requested banks to rearrange a mortgage anticipated to be within the $12 billion-14 billion vary that it plans to supply to patrons of its gasoline pipeline community, sources stated, because the oil big advances plans to lift funds from asset gross sales.
Aramco might increase at the least $17 billion from the sale of a major minority stake in its gasoline pipelines, sources have beforehand advised Reuters. The stake could be provided with a mortgage financing bundle already in place, value about 80% of the value.
Banks that financed a $12.4 billion acquisition of the corporate’s oil pipelines earlier this yr obtained a request for proposals from Aramco final week, stated three sources aware of the matter.
That deal, which included all of Aramco’s present and future stabilised crude pipelines, was backed by $10.5 billion financing from a big group of banks together with Citi, HSBC and JPMorgan.
Aramco didn’t instantly reply to a request for touch upon the brand new financing for gasoline pipelines. It’s working with JPMorgan and Goldman Sachs on the gasoline pipeline deal, sources have stated.
Reuters reported in August that corporations which have been in talks for Aramco’s gasoline pipeline belongings embody World Infrastructure Companions (GIP), Brookfield, Singapore sovereign wealth fund GIC, European gasoline infrastructure proprietor and operator SNAM, in addition to China’s Silk Street, Chinese language state-backed funding fund CNIC Corp, South Korea’s sovereign wealth fund Korean Funding Corp (KIC) and NH Funding & Securities.
Potential patrons are anticipated to submit bids on the finish of October, stated one of many sources.
Earlier this yr Aramco, much like Abu Dhabi Nationwide Oil Co (ADNOC), used a lease-back settlement to promote a 49% stake of newly shaped Aramco Oil Pipelines Co to the customer and rights to 25 years of tariff funds for oil carried on its pipelines.
It plans to make use of an identical construction for its gasoline pipelines.
Enhancing by Peter Graff
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