• 3 minutes Oil Price Could Fall To $30 If Global Deal Not Extended
  • 8 minutes Why Is America (Texas) Burning Millions of Dollars Per Day Of Natural Gas?
  • 11 minutes Is $60/Bbl WTI still considered a break even for Shale Oil
  • 15 minutes CNN:America's oil boom will break more records this year. OPEC is stuck in retreat
  • 15 mins The Pope: "Climate change ... doomsday predictions can no longer be met with irony or disdain."
  • 9 hours Hormuz and surrounding waters: Energy Threats to the World: Oil, LNG, shipping markets digest new risks after Strait of Hormuz attack
  • 14 hours As Iran Nuclear Deal Flounders, France Turns To Saudi For Oil
  • 9 hours The Magic and Wonders of US Shale Supply: Keeping energy price shock minimised: US oil supply keeping lid on prices despite global risks: IEA chief
  • 18 hours Middle East on brink: Oil tankers attacked off Oman
  • 12 hours Never Knew Gasoline Prices were this important!
  • 9 hours Russia removes special military forces from Venezuela . . . . Maduro gone by September ? . . . Oil starts to flow ? Think so . .
  • 7 mins Plants are Dying
  • 6 hours We Are Better Than This
  • 1 day Emmissions up, renewables nowhere
  • 1 day Middle East Attack Jolts Oil-Import Dependent Asia
  • 11 hours (Un)expectedly: UK Court Sets Assange U.S. Extradition Hearing For February 2020
  • 11 hours The Latest: Iranian FM Says US Cannot Expect To ‘Stay Safe’
Is Now A Good Time To Buy Energy Stocks?

Is Now A Good Time To Buy Energy Stocks?

Two bearish factors are weighing…

BP: Petrochemicals Drive U.S. Oil Demand Boom

BP: Petrochemicals Drive U.S. Oil Demand Boom

The United States saw its…

Saudi Aramco Looks To Secure $6B In Cheap Loans Before IPO

Aramco Oil

In a sign that it is trying to ensure that its highly anticipated IPO will take place this year, Saudi Aramco is seeking to obtain up to US$6 billion in cheaper loans before the share sale, taking advantage of banks that are willing to boost ties with the Saudi oil giant and position themselves for roles in the IPO, Reuters reported on Wednesday, citing sources at banks and export credit agencies.

According to two sources, Aramco could raise at least US$5 billion, backed by export credit agencies, in transactions on which Citigroup, Standard Chartered, and Sumitomo Mitsui Banking Corporation are advising.

Aramco wants to obtain loans on which it would later pay lower interests because it still is a wholly state-owned firm that can benefit from cheaper loans for sovereign borrowers.

“There’s momentum for Aramco to tap this form of financing. If they did it after the IPO, they’d have to pay more,” one banker told Reuters.

The Saudi oil firm has invited banks vying for roles in the IPO for meetings in Saudi Arabia at the end of January and early February to present their cases, banking sources told Reuters earlier this week.

Goldman Sachs, Citi, and Deutsche Bank executives are expected to attend the meetings. Those three banks are also said to be in the lead to win big roles in Aramco’s IPO.

Last month, Saudi Aramco was said to be seeking by the end of 2017 proposals from banks willing to be global coordinators and bookrunners of the sale of 5 percent of the oil giant that could bring Saudi Arabia US$100 billion, if Saudi officials’ valuation of the company at US$2 trillion stands.

Related: Soaring Indian Oil Demand Grabs OPEC’s Attention

Saudi officials have claimed that Aramco’s value is US$2 trillion, although analysts value the Kingdom’s oil giant at much less, with the majority putting the valuation at between US$1 trillion and US$1.5 trillion.

Last week, Aramco was made into a joint stock company in preparation for its IPO. The company has a fully paid capital of US$16 billion (60 billion riyals) divided into 200 billion ordinary shares, and a board of eleven directors who will be in charge of the company’s listing.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News