Thursday 15 April 2021

Exclusive: Aramco pipeline investors to refinance loans with bonds next year - sources | Reuters

Exclusive: Aramco pipeline investors to refinance loans with bonds next year - sources | Reuters

EIG Global Energy Partners will lead a yet-unnamed consortium to issue billions of dollars in bonds across two or three transactions to replace bank debt backing an investment in Saudi Aramco’s oil pipeline assets, two sources said.

The Washington, D.C.-based firm’s consortium will issue bonds to replace $10.5 billion in so-called staple financing that was arranged by Aramco for potential suitors to take the 49% stake, the sources said.

The $12.4 billion deal, announced last Friday, gives the EIG-led group a stake in Aramco Oil Pipelines, which has the rights to 25 years of tariff payments for oil transported through Aramco’s oil pipeline network that traverses the world’s largest crude exporter.

The staple financing backing the deal had a five-year maturity and one-year extension option, the sources said.

EIG will replace the full amount with long-tenor bonds across two or three bond deals, they said.

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