Aramco Seeks Cheap Loans ahead of IPO

Aramco Seeks Cheap Loans ahead of IPO

Saudi Aramco is seeking to raise billions of dollars through cheap bank loans in order encourage strong ties with banks before its stock listing, banking sources and sources at Export Credit Agency (ECA) told Reuters.

Saudi Aramco eyes obtaining up to $6 billion through the cheap loans before the share sale, Oil Price reported. Sumitomo Mitsui Banking Corporation, Citigroup (Citi), and Standard were advising on the transactions.

Aramco’s plans to raise funds enhance its stock listing as the world’s largest initial public offering (IPO), and suggest that the IPO will take place in 2018 regardless of all the speculations that it might be delayed.

The targeted loans have small interest rate. Yet, banks are trying to have greater presence in the Saudi Kingdom as Aramco’s 5% selling might value the company at $2 trillion.

Avatar photo

Sarah Samir 4111 Posts

Sarah has been writing in the oil and gas field for 8 years. She has a Bachelor Degree in English Literature. She has three years of experience in the banking sector.

Login

Welcome! Login in to your account

Remember me Lost your password?

Lost Password