Aramco oil pipeline investors to sell at least $ 4 billion in bonds in fourth quarter – sources


The Saudi Aramco logo is pictured at the Abqaiq oil facility in Saudi Arabia on October 12, 2019. REUTERS / Maxim Shemetov

DUBAI, Sept. 8 (Reuters) – A consortium led by EIG Global Energy Partners that has taken a stake in Saudi Aramco pipelines is preparing to issue at least $ 4 billion in the fourth quarter to refinance a loan that has largely funded the $ 12.4 billion deal, two people familiar with the matter said.

The deal gave the EIG-controlled consortium a 49% stake in a new entity, Aramco Oil Pipelines Company, and rights to 25 years of tariff payments for oil transported through Aramco’s extensive pipeline network.

The deal, which includes all of Aramco’s existing and future stabilized crude pipelines, was backed by $ 10.5 billion in funding from a large group of banks including Citi, HSBC and JPMorgan.

The bonds will be refinanced over two or three deals, sources said.

Investors in the pipeline will likely accelerate in the fourth quarter on a previous timeline to enter the market with the first bonds, with one adding that it would likely be next month.

The consortium is expected to raise at least $ 4 billion in the first bond transaction, two sources said, one adding it could raise up to $ 5 billion and the second claiming it could reach more than $ 5 billion. half of the loan value.

Sources told Reuters in April that the first bond sale would likely take place in the first quarter of next year.

EIG, a Washington, DC-based investment firm that has invested more than $ 34 billion in global energy and energy infrastructure projects, and Abu Dhabi sovereign wealth fund Mubadala Investment Co, which has joined the consortium led by EIG, both declined to comment.

The deal closely mirrors infrastructure deals signed over the past two years by Abu Dhabi National Oil Co (ADNOC), which has raised billions of dollars through sale-leaseback agreements of its pipeline and pipeline assets. gas pipelines.

A consortium that took a stake in ADNOC’s gas pipelines also refinanced nearly $ 8 billion in bank debt with bonds in two transactions in October last year and February 2021.

Reporting by Yousef Saba, Davide Barbuscia and Saeed Azhar; Editing by Bernadette Baum

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