Saudi Aramco, the kingdom's state oil company, is close to securing a loan of about $10 billion from a large group of international banks. According to sources, a deal could be signed in the coming weeks, with talks with US, British, Chinese and Japanese lenders in their final stages.
People familiar with the matter said Aramco is seeking a revolving credit facility, which would let it draw funds up to a set limit when needed and borrow again after repaying. The proposed pricing is about 60 basis points, or 0.60 percentage points, over SOFR, the benchmark rate for US dollar lending.
Banks expected to take part include JPMorgan Chase, Citigroup, HSBC, Bank of China, Industrial and Commercial Bank of China and Japan's Mitsubishi UFJ Financial Group. Aramco and some of the banks declined to comment, so the size and terms remain those of ongoing negotiations rather than a final agreement.
The financing comes as the war with Iran has pushed up crude prices while claimed Houthi attacks on Saudi facilities and disruption to shipping in the Strait of Hormuz have made exports and transport costs less certain. A standby facility would give Aramco quick access to cash if it needs it.