Saudi Aramco has sought banks to arrange a loan in the $12 billion to $14 billion range for buyers of its gas pipeline network, according to sources, as the oil giant moves on with plans to generate capital through asset sales.
According to reporters, Aramco might raise at least $17 billion through the sale of a major minority stake in its gas pipelines. The stake would be sold with a loan financing package worth around 80% of the purchase price already in place.
According to three sources familiar with the situation, banks that financed Aramco’s $12.4 billion acquisition of its oil pipelines earlier this year received a call for offers from the business last week.
All of Aramco’s existing and prospective stabilized crude pipelines were included in the sale, which was backed by $10.5 billion in financing from a big consortium of banks including Citi, HSBC, and JPMorgan.
A request for comment on the additional finance for gas pipelines was not immediately returned by Aramco. According to insiders, it is working on the gas pipeline project with JPMorgan and Goldman Sachs.
