Saudi Aramco extends $10 bln loan for 1 year: report

Logo of Saudi Arabian Oil Co.

Saudi Arabian Oil Co. (Saudi Aramco) secured a one-year extension to its $10 billion loan raised last year, Reuters reported, citing unnamed sources.

The loan had a one-year extension option, but instead of paying a higher interest rate to extend the deal – as agreed – Saudi Aramco asked for better terms to reflect improved market conditions, the sources added.

Under the extended facility, Saudi Aramco will pay as much as 30%-40% less than it would have paid under the original agreement.

In May 2020, oil giant Saudi Aramco closed a $10 billion one-year loan provided by a group of 10 banks, Argaam reported.

The loan, which had an opening margin of 50 basis points over London Interbank Offered Rate (LIBOR), had a one-year extension option at the lenders’ discretion.