Saudi Arabian Oil Co. (Aramco) is in advanced talks with several international and regional banks to borrow $10 billion loan by the end of March
in order to
replace an outstanding $4 billion 5-year credit facility
set to
mature this year, Bloomberg quoted sources familiar with the matter as saying.
The debt will be in four tranches that include a $6 billion 5-year loan
and
a $1 billion 1-year loan at 12
basis points (bps)
and 10 basis points
above Libor, respectively.
It also includes a SAR 7.5 billion 5-year loan and SAR 3.75 billion 1-year loan at 11 bps, and 7 bps above the Saudi Riyal interbank offered rate, respectively.
Officials at Saudi Aramco could not be reached for comment, according to the report.
Dubai-
based
Emirates National Oil Co. (ENOC), which made an offer to buy Dragon Oil earlier this month, is also seeking $1.5 billion loan that will pay 235 bps above Libor, sources told Bloomberg. The company bid for 46 percent of Dragon Oil earlier this month.
Both oil producers are tapping the loan market, capitalizing on favorable borrowing conditions as their cash flows have been hit by falling oil prices.
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