Saudi Aramco sends request to banks for pipeline financing – sources
DUBAI, March 24 (Reuters) – Saudi Aramco (2222.SE) has sent a request for proposals to banks for the financing it wants to offer investors looking to lease its pipelines, three sources said, a sign that the oil giant is making progress with its plans to extract value from its assets.
Aramco, which is advised by JPMorgan (JPM.N) and the MUFG of Japan (8306.T) on financing, has sent the request in recent weeks to its relational banks, that is, banks that have already loaned to the company, two of the sources said. The sources spoke on condition of anonymity because the case is private.
It is asking lenders to submit pledges for a loan of up to $ 10 billion, the two sources said.
Aramco and JPMorgan did not immediately respond to requests for comment. MUFG declined to comment.
The planned pipeline transaction would be similar to infrastructure deals signed over the past two years by Abu Dhabi’s national oil company ADNOC, which has raised billions of dollars by leasing its oil and gas pipeline assets. to investors, sources previously said.
Aramco prepares “core financing” for its bidders – a vendor-provided finance package that buyers can use to support their purchase.
One of the sources said the terms offered by the company were “aggressive” both in terms of the price and the length of the loan.
A second source said conditions mirrored market conditions, with Aramco taking advantage of banks rich in cash and hungry for new assets.
Aramco, the world’s largest oil exporter, said on Sunday that its net profit fell 44.4% to 183.8 billion riyals ($ 49.01 billion) for the fiscal year ended Dec.31, the COVID-19 pandemic that has reduced global demand for crude.
However, he has maintained his pledge to declare a dividend of $ 75 billion for 2020, most of which goes to the Saudi government. Read more
($ 1 = 3.7501 rials)
Reporting by Davide Barbuscia;
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