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.