Saudi Aramco close to signing $10 bln loan: sources

Saudi Aramco is close to finalizing a $10 billion loan with a group of 10 banks, Reuters reported, citing 3 sources familiar with the matter.

HSBC and Japan’s Sumitomo Mitsui Banking Corporation (SMBC) will provide the largest commitments of nearly $1.5 billion each, the sources said.

The loan has been agreed upon but not yet finalized, the sources noted, indicating the funds will most likely be used to complete the acquisition of Saudi Basic Industries Corp (SABIC) stake.

The oil giant could even use the cash for other purposes, including dividend payments, they added.

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.