DUBAI (Reuters) - Saudi Aramco has closed a $10 billion one-year loan provided by a group of 10 banks, LPC, a fixed income news service which is part of Refinitiv, reported.
HSBC, Japan’s SMBC and First Abu Dhabi Bank led the transaction, while BNP Paribas, Citi, Credit Agricole, JPMorgan, Mizuho, MUFG and Societe Generale also participated in the loan, LPC said.
Sources have previously told Reuters that Aramco would use the loan to back its acquisition of a 70% stake in Saudi Basic Industries Corp (SABIC) from Saudi Arabia’s Public Investment Fund, a deal worth almost $70 billion.
The loan, which has an opening margin of 50 basis points over Libor, has a one-year extension option at the lenders’ discretion, LPC said, citing one banker.
Aramco, which did not immediately respond to a request for comment, is aiming to take the loan out in the bond market by the fourth quarter of this year, the banker said.
Aramco on Tuesday reported a 25% fall in first-quarter net profit, missing analysts’ estimates.
The oil company said on Tuesday that its planned acquisition of the equity stake in Saudi petrochemical maker SABIC was on track to close in the second quarter.
Reporting by Davide Barbuscia; Editing by Alexander Smith