Tuesday, 16 July 2024

BlackRock-led investors in Aramco pipelines hire banks for bond sale | Reuters

BlackRock-led investors in Aramco pipelines hire banks for bond sale | Reuters

BlackRock-led (BLK.N), opens new tab investors in Saudi Aramco's (2223.SE), opens new tab gas pipelines network have hired banks to arrange investor meetings ahead of a potential sale of bonds, a bank document showed on Tuesday, to refinance a loan that backed their stake purchase.

The investors had in 2021 taken a 49% stake in Aramco Gas Pipelines Co in a $15.5 billion lease-and-leaseback agreement.

They are now issuing amortising bonds to continue refinancing the $13.4 billion bridge loan that backed the deal.

Greensaif Pipelines Bidco, the debt issuer indirectly owned by BlackRock and Hassana Investment Co, hired JPMorgan and Standard Chartered to arrange fixed income investor meetings starting on Tuesday.

A sale of 12- and 18-year U.S. dollar-denominated amortising bonds will follow, subject to market conditions, the document from one of the banks arranging the sale showed. The tranches have weighted average lives of 10 and 14.5 years, respectively.

In February last year, Greensaif raised $4.5 billion by selling amortising bonds.
BlackRock and its affiliates own 77.2% of Greensaif, while the rest is owned by Hassana, the investment arm of Saudi Arabia's General Organization of Social Insurance.

A similar lease-and-leaseback deal in 2021 saw Aramco agree to sell a 49% stake in its oil pipelines network to a consortium led by U.S.-based EIG Global Energy Partners for $12.4 billion.

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