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The consortium that won Saudi Aramco’s landmark gas pipelines deal reached an agreement with 19 banks to secure a bridge loan worth $13.4 billion to finance the $15.5 billion transaction, Alarabiya reported, citing sources.
The participating banks include HSBC, JP Morgan, BNP Paribas, Standard Chartered, Societe Generale, Credit Agricole, Citibank, Japan's Mizuho Group, Mitsubishi UFJ Financial Group and ICBC.
Three Gulf banks will also participate in the deal, including Riyad Bank, First Abu Dhabi Bank (FAB) and Abu Dhabi Commercial Bank (ADCB), in addition to three Chinese banks, the Agricultural Bank of China (ABC), Bank of China and China Construction Bank.
Pricing for the 7-year financing will start at 50 basis points and increase annually to 175 basis points by the end of the financing period, according to the sources.
Last month, Saudi Aramco and an international investor consortium, led by affiliates of BlackRock and Hassana, announced the successful closing of the lease and leaseback deal previously announced on December 6, 2021. The consortium acquired 49% stake in Aramco Gas Pipelines Co., a subsidiary of Aramco, for $15.5 billion (SAR 58.1 billion).
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