Saudi Aramco closes $10 bln 1-year loan: sources

Oil giant Saudi Aramco closed a $10 billion one-year loan provided by a group of 10 banks, reported by LPC, a fixed income news service and a part of Refinitiv.

HSBC, Japan’s SMBC and First Abu Dhabi Bank led the transaction, while BNP Paribas, Citi, Credit Agricole, JPMorgan, Mizuho, MUFG and Societe Generale also participated in the loan, LPC said.

The loan, which has an opening margin of 50 basis points over London Inter-bank Offered Rate (Libor), has a one-year extension option at the lenders’ discretion, LPC said, citing one banker.

According to data compiled by Argaam, Saudi Aramco is planning to restructure its deal to acquire a controlling stake in petrochemicals maker Saudi Basic Industries Corp (SABIC), after a more than 40% drop in SABIC’s value following a slump in oil prices during the coronavirus pandemic.

On March 27, 2019, Aramco signed an agreement to acquire 70% stake in SABIC from the Public Investment Fund (PIF) for $69.1 billion.

In October 2019, the company agreed with the PIF to pay 36% of the deal value in cash upon the close of the deal, and the remaining 64% to be settled in the form a loan arranged by the seller.

Aramco confirmed yesterday that the 70% stake in SABIC from the Public Investment Fund (PIF) is on track to close in Q2 2020.