Saudi Aramco taps banks for $12-14 bln gas pipeline loan – sources

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DUBAI, Oct 11 (Businesshala) – Saudi Aramco has asked banks to arrange a loan of $12 billion-14 billion that it plans to offer to buyers of its gas pipeline network, sources said. As the oil giant advances plans to raise funds from asset sales.

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Aramco could raise at least $17 billion from the sale of a significant minority stake in its gas pipelines, sources have previously told Businesshala. The stake will be offered in conjunction with the already existing debt financing package, which is valued at around 80%.

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The banks that financed the $12.4 billion acquisition of the company’s oil pipelines earlier this year received a request for proposals from Aramco last week, three sources familiar with the matter said.

That deal, which included all of Aramco’s existing and future stable crude pipeline, was backed by $10.5 billion in financing from a large consortium of banks including Citi, HSBC and JPMorgan.

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Aramco did not immediately respond to a request for comment on new financing for the gas pipelines. Sources said it is working with JP Morgan and Goldman Sachs on the gas pipeline deal.

Businesshala reported in August that companies that have negotiated Aramco’s gas pipeline assets include Global Infrastructure Partners (GIP), Brookfield, Singapore sovereign wealth fund GIC, European gas infrastructure owner and operator SNAM, as well as China’s Silk Road. , Chinese state- included. Backed investment funds CNIC Corp, South Korea’s sovereign wealth fund Korean Investment Corp (KIC) and NH Investments & Securities.

One of the sources said potential buyers are expected to submit bids by the end of October.

Earlier this year, Aramco, similar to Abu Dhabi National Oil Company (ADNOC), used a lease-back agreement to sell a 49% stake in the newly formed Aramco Oil Pipelines Company to the buyer and pay a 25-year tariff payment for the oil. given the right. its pipeline.

It plans to use a similar structure for its gas pipelines. (Editing by Peter Graff)

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