DUBAI May 30 State-owned oil giant Saudi Aramco
is seeking to raise $12.5 billion in debt to help
finance its joint venture with Dow Chemical, according
to a report in Project Finance International (PFI), a unit of
Saudi Aramco has sent an information memorandum to local and
international banks detailing the $20 billion project with Dow
Chemical. The project is due to be completed in 2016, and will
produce more than 3 million tonnes a year of petrochemicals.
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 U. S. investors, or an Islamic bond.
The overall financing will mature after 16 years while the
ECA portion will have a tenor of 17 years. The financing
includes completion and construction guarantees from Aramco and
Banks have eight weeks to respond to the memorandum, with
bids due after the Holy month of Ramadan which is expected this
year to end in the third week of August.
A spokesman for Saudi Aramco declined to comment.
Indicative sizes for all the three tranches range from at
least $5 billion from the ECA portion to about $2.8 billion from
commercial bank lending potentially in both Saudi riyals and
dollars, and about $1.4 billion from a bond deal.
(Reporting by Rachna Uppal and Reem Shamseddine; Editing by