Saudi news

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

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.

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