Saudi Aramco, Petronas seek $8 bln loan for RAPID project

Saudi Aramco and Malaysia’s Petroliam Nasional Bhd (Petronas) are looking to raise $8 billion through a bridge loan for the Refinery and Petrochemical Integrated Development (RAPID) project, Project Finance International (PFI) reported on Wednesday.

Over ten banks have been invited to submit pricing for the loan facility, which will have a tenor of 18 months.

The loan will be equally guaranteed by both state-run firms.

Last year, Aramco and Petronas sought to raise a $7.2 billion syndicated loan to finance a planned refinery and petrochemical complex in Johor, but the reason behind securing a larger loan is not clear, PFI added. 

Aramco inked an agreement in February to buy a 50 percent stake in the refining and petrochemical project, to boost its downstream business ahead of a planned initial public offering next year.

Earlier this month, the Saudi oil giant’s wholly owned subsidiary, Aramco Overseas Holdings, acquired half of Petronas Chemicals Group’s (PCG) polymers unit in Malaysia for $900 million.