Gold­man Sachs buys into Aramco’s US$10b loan

New Straits Times - - Busi­ness -

DUBAI: Gold­man Sachs has bought a slice of Saudi Aramco’s US$10 bil­lion (RM4.28 bil­lion) credit fa­cil­ity as it seeks a role in the his­toric list­ing of the oil com­pany, said sources.

It is com­mon prac­tice in cap­i­tal mar­kets to first es­tab­lish bank­ing re­la­tion­ships through loan trans­ac­tions which are then fol­lowed by other deals.

Gold­man pur­chased a por­tion of the US$10 bil­lion re­volv­ing credit fa­cil­ity Aramco signed with a num­ber of banks in 2015.

Sources said Gold­man pur­chased sev­eral mil­lion dol­lars in the sec­ondary mar­ket from Aus­tralia and New Zealand Bank­ing Group. The bank was not part of the orig­i­nal list of 27 banks on the credit fa­cil­ity, which in­cluded Cit­i­group, JPMor­gan, HSBC and Bank of China.

Aramco plans to raise US$100 bil­lion through the list­ing of five per cent of the com­pany in Saudi Ara­bia and one or more over­seas lo­ca­tion.

JPMor­gan Chase, Mor­gan Stan­ley and HSBC have been hired as in­ter­na­tional fi­nan­cial ad­vis­ers for Aramco’s ini­tial pub­lic of­fer­ing.

Two of the sources said Gold­man was ex­pected to join the trio as a global co­or­di­na­tor and bookrun­ner for the fa­cil­ity when those po­si­tions were fi­nalised. Reuters

Newspapers in English

Newspapers from Malaysia

© PressReader. All rights reserved.