Aramco oil pipeline investors raise $1.7 billion from a bank loan

The consortium that won the Aramco oil pipeline deal obtained a loan of about $1.7 billion to finance the new tranche of the Aramco oil pipeline deal, in a radical shift from bond markets to bank financing after the market turmoil, according to sources familiar with the matter. It is to Al-Arabiya.net.

The sources said that the consortium led by EIG, which acquired the year before last a stake in Saudi Aramco’s oil pipeline network, raised financing in two tranches for 15 years at a value of $910 million and for a period of 20 years at about $825 million.

The sources pointed out that the banks that participated in arranging the loan included Riyad Bank, Bank of China, Korean KDB Bank and UAE Mashreq Bank for a 15-year tranche, which offers variable interest ranging between 180-190 basis points.

While the National Bank of Saudi Arabia and Apicorp Corporation provide the other tranche of financing at a value of $ 750 million for a period of 20 years, which offers a fixed interest rate of 245 basis points.

And last year, the alliance raised financing estimated at about $2.5 billion from a sub-target bond issuance that raised between $3.5-4.4 billion with the onset of bond market volatility like that I met last year.

An alliance led by EIG Global Energy Partners acquired a 49% stake in Aramco’s oil pipeline network in June before last, with a value of $12.5 billion, including $10.8 billion through global debt markets.