Aramco may borrow $50b from banks for Sabic stake

Deal expected to involve the purchase of all or nearly all of 70% held by Saudi wealth fund PIF

National oil giant Saudi Aramco could borrow as much as $50 billion (Dh183.65 billion) from international banks to fund its acquisition of a stake in Saudi Arabian Basic Industries Corp (Sabic), banking sources familiar with the matter said.

Over the past several weeks, bankers have met with Aramco to present proposals for financing the purchase of a major stake in the world’s fourth-biggest petrochemicals producer, which has a stock market value of about $100 billion.

The deal is expected to involve the purchase of all or nearly all of the 70 per cent stake in Sabic held by the Public Investment Fund (PIF), the kingdom’s top sovereign wealth fund.

That implies a deal value of roughly $70 billion, though talks on the acquisition price are still at an early stage.

The financing package is expected to take shape later this year or, more probably, in early 2019, bankers involved in the meetings said.