Saudi Aramco pipeline investors to refinance $10.5 bln loan with bonds: report

Logo of Saudi Aramco

EIG Global Energy Partners will lead a consortium to issue billions of dollars in bonds across two or three transactions to replace bank debt backing an investment in Saudi Aramco’s oil pipeline assets, Reuters reported, citing two sources.

The consortium will issue bonds to replace $10.5 billion in so-called staple financing that was arranged by Aramco for potential suitors to take the 49% stake, the sources said.

The staple financing backing the deal had a five-year maturity and one-year extension option.

The first bond issuance will likely be in Q1 2022, and the entire refinancing will be done within two years, the sources noted.

Last week, Saudi Aramco signed a deal with a consortium led by EIG to optimize its assets through a lease-and-lease-back agreement involving its stabilized crude oil pipeline network. The oil giant will receive upfront proceeds of around $12.4 billion upon closing.