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FinancialNews


  • 31-05-12

    Saudi Aramco plans to raise USD12.5b for Dow JV

    (MENAFN) Saudi Aramco, the world's largest crude oil producer, plans to raise USD12.5 billion loan to help finance its joint project with Dow Chemical, according to a report in Project Finance International (PFI), a unit of Thomson Reuters. The report said that the oil giant firm has sent an information memorandum to local and international lenders detailing the USD20 billion project with Dow Chemical. The multi-tranche, multi-tenor financing strategy will include an export credit agency (ECA) portion, a commercial bank tranche and a capital markets part, most likely a 144a issue, open to US investors, or an Islamic bond. Indicative sizes for all the three tranches range from at least USD5 billion from the ECA portion to about USD2.8 billion from commercial bank lending potentially in both Saudi riyals and dollars, and about USD1.4 billion from a bond deal. The project, which is scheduled to be completed in 2016, is poised to produce more than 3 million tonnes a year of petrochemicals.

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