RLPC-Saudi Jubail refinery financing oversubscribed-sources

* More than 30 banks interested in financing refinery

* Bank financing almost 80 percent oversubscribed

* Project sponsors will now decide on debt structure

By Christopher Mangham

LONDON, Oct 13 (Reuters) - State oil company Saudi Aramco and French oil major Total (TOTF.PA: Quote, Profile, Research) have received bids from more than 30 banks to finance a $12.8 billion refinery in Saudi Arabia, banking sources close to the deal said.

The Jubail oil refinery will be funded through a 65 percent debt and 35 percent equity ratio. The total financing is expected to be $8 billion, which will be the largest Gulf project financing in 2009.

The bank financing is almost 80 percent oversubscribed and the sponsors will now decide on how best to optimise the financing structure before financial close in December, one of the bankers said.

As previously reported by Reuters Loan Pricing Corp in July, the bank financing had initially envisaged including an uncovered 16-year bank tranche worth around $1.4 billion, and a Saudi tranche for the same amount.