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Saudi Aramco May Sign $4 Bln Loan Soon-IFR - ASHARQ AL-AWSAT English Archive
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KHOBAR, Saudi Arabia (Reuters) – State-run Saudi Aramco could sign a $4 billion two-part revolver loan with banks next week, IFR Markets, a unit of Thomson Reuters, said on Tuesday quoting banking sources.

Banks are getting approvals from credit committees for the deal, split between a one-year facility which can be extended four times — effectively a five-year term — and a five-year piece, IFR said.

For the one-year piece, the pricing for dollar funding is 13 basis points over LIBOR. As for the five-year piece, the pricing would be 18 basis points over LIBOR.

The deal could be oversubscribed despite the extremely tight pricing on offer, IFR said.

The deal refinances a facility of the same amount that was signed in 2006. It was split between a $1 billion one-year piece, which had the same extension option as the new loan, and a $3 billion five-year tranche. The margin was 16 basis points. It was heavily oversubscribed.

BNP Paribas, HSBC, JP Morgan and Riyad Bank were mandated lead arrangers on the deal, IFR said.

Asharq Al-Awsat

Asharq Al-Awsat

Asharq Al-Awsat is the world’s premier pan-Arab daily newspaper, printed simultaneously each day on four continents in 14 cities. Launched in London in 1978, Asharq Al-Awsat has established itself as the decisive publication on pan-Arab and international affairs, offering its readers in-depth analysis and exclusive editorials, as well as the most comprehensive coverage of the entire Arab world.

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