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Saudi Aramco ... maintaining financial flexibility

Saudi Aramco ... maintaining financial flexibility

Saudi Aramco signs $10bn credit deal


Saudi Aramco has signed a new $10 billion standby revolving credit facilities (RCF) agreement as part of the company’s strategy of maintaining financial flexibility.

The agreement replaces the existing $4 billion facilities agreement, which was signed in 2010.

The facilities are divided into US dollar (USD) and Saudi Riyal (SR) tranches broken down as follows:

• $7 billion, of which $6 billion is a five-year facility with two one-year extension options (5+1+1) and $1 billion is an annually-renewable 364-day facility;

• SR11.25 billion ($3 billion) consisting of Murabaha facilities, of which SR7.5 billion ($2 billion) is a five-year facility with two one-year extension options (5+1+1) and SR3.75 billion ($1 billion) is an annually-renewable 364-day facility.

The terms of the new facilities reflect Saudi Aramco’s strong credit standing, a company statement said. The margin for the USD Facilities is 12 and 10 basis points (bps) for the five-year and 364-day facilities respectively, while the margin for the $3 billion Murabaha facilities is 11 and 9 bps for the five-year and 364-day Facilities respectively. This pricing sets a benchmark in the kingdom and the region and reflects the banking community’s continuing confidence in Saudi Aramco and Saudi Arabia.

The $7 billion tranche participants are Bank of China Limited (London Branch), Citi, Deutsche Bank, HSBC Bank Mid-dle East, JPMorgan Chase Bank (Riyadh Branch), Standard Chartered Bank, Sumitomo Mitsui Banking Corporation (SMBC), and The Bank of Tokyo – Mitsubishi UFJ as book runners and mandated lead arrangers; BNP Paribas, Crédit Agricole, Mizuho Bank and RBC Capital Markets as lead arrangers; and Abu Dhabi Commercial Bank, ANZEF Limited, Gulf International Bank, National Bank of Abu Dhabi, National Bank of Kuwait (Jeddah Branch), The Northern Trust Company, and Societe Generale Corporate & Investment Banking as Arrangers.

The $3 billion Saudi Riyal Murabaha tranche participants are Alinma Bank, Riyad Bank, and The National Commercial Bank as Book Runners and Mandated Lead Arrangers; Banque Saudi Fransi, SAMBA Financial Group and The Saudi British Bank (SABB) as Lead Arrangers; and Arab National Bank and Saudi Hollandi Bank as arrangers.

Riyad Bank was selected as both the global facilities agent and murabaha facilities agent, while The Bank of Tokyo-Mitsubishi UFJ was selected as the USD facilities agent.

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