MOSCOW (MRC) -- Saudi Arabian Oil Co. has reached agreement with a group of global and regional banks to borrow USD10 billion and is set to wrap up the deal within days, according to two people with knowledge of the matter, as per Hydrocarbonprocessing.
The deal, one of the biggest in the Gulf region in recent years, is in the final documentation stage, the people said, asking not to be identified as the information is confidential. They declined to disclose the lenders.
The transaction will be split between a USD6 billion five-year tranche and a USD1 billion one-year tranche, priced at 12 basis points above Libor and 10 basis points above Libor respectively, the people said. A spokesman for Saudi Aramco declined to comment.
As MRC reported earlier, in May 2014, Saudi Aramco announced that its downstream investments would exceed USD100 billion over the next decade, as global demand for oil rises by a quarter in the next 25 years.
Besides, Saudi Aramco Products Trading Co., the fuel marketing unit of Saudi Arabia’s state oil producer, started selling products of an affiliated petrochemicals maker. Aramco Trading will sell products including polypropylene and polyethylene made by Rabigh Refining & Petrochemicals Co.
Saudi Aramco, officially the Saudi Arabian Oil Company, is a Saudi Arabian national oil and natural gas company based in Dhahran, Saudi Arabia. Saudi Aramco's value has been estimated at up to USD10 trillion in the Financial Times, making it the world's most valuable company. Saudi Aramco has both the largest proven crude oil reserves, at more than 260 billion barrels, and largest daily oil production.
MRC