Saudi Aramco Leads Surge in Gulf Energy Loans After Oil’s Plunge - Bloomberg

Saudi Aramco Leads Surge in Gulf Energy Loans After Oil’s Plunge - Bloomberg:

"Saudi Arabian Oil Co. is leading an upsurge in borrowing by energy companies in the Middle East as they turn to banks and investors for cash after a slide in crude prices eroded their ability to pay for exploration and production.
Energy producers in the six-nation Gulf Cooperation Council more than doubled their borrowings in the second quarter from a year earlier to $8.9 billion, the most in 15 months, data compiled by Bloomberg show. Yanbu Aramco Sinopec Refining, a joint venture between Saudi Arabian Oil, known as Aramco, and China Petroleum & Chemical Corp. was the top borrower at $4.7 billion for refinancing. The figures include credits to companies involved in oil exploration, production and refining as well as natural gas services and processing.
Lending rose as state-run companies including Kuwait National Petroleum Co. took advantage of falling borrowing costs. The J.P. Morgan Middle East Composite Index of the region’s debt yield, an indication of borrowing rates, is at the lowest since November 2015. "



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