Saudi Aramco said to be in talks with banks to borrow $10 bln to finance SABIC acquisition

Saudi Aramco is in talks with banks to borrow about $10 billion, Reuters reported on Wednesday, citing 3 anonymous banking sources.

The purpose of the loan is to help finance its acquisition of a 70% stake in Saudi Basic Industries Corp (SABIC), the report added.

The banks involved in the talks are HSBC, JPMorgan and some Gulf-based banks, the sources said, adding that the discussions are still in an initial stage as the company is seeking the opinion of banks.

In response to a Reuters request for comment on this matter, Saudi Aramco said, “The company continues to review its financial options as part of its normal course of business, while prudently preserving its pristine balance sheet and its resilience.”

In March 2019, Saudi Aramco signed a share purchase agreement to acquire a 70% majority stake in SABIC from the Public Investment Fund (PIF), Argaam reported.

In Oct. last year, Aramco inked an agreement PIF to amend the payment terms of the $69.1 billion worth of the acquisition of a 70% stake in SABIC.