BlackRock Said to Get $10 Billion Financing for Aramco Deal - Bloomberg
A group led by BlackRock Inc.’s Global Infrastructure Partners unit has arranged a roughly $10 billion financing package for its planned investment in Saudi Aramco natural gas infrastructure, people familiar with the matter said.
The majority of the financing is a seven-year loan facility, which could later be refinanced in the bond market, the people said. It also includes a 19-year loan facility, according to the people, who asked not to be identified because the information is private.
The loans are set to support the GIP consortium’s investment in the midstream infrastructure assets at Aramco’s giant Jafurah gas project, the people said. Citigroup Inc., JPMorgan Chase & Co., Mitsubishi UFJ Financial Group Inc., Mizuho Financial Group Inc. and Sumitomo Mitsui Banking Corp. are among banks that joined the financing, the people said.
Last month, GIP signed a $11 billion deal to lease the infrastructure serving the Jafurah gas project and then rent it back to Aramco for 20 years. Aramco is developing the over $100 billion Jafurah project to supply fuel to domestic power plants as well as for export. A newly-formed subsidiary, Jafurah Midstream Gas Co., will be created as part of the deal. Aramco will hold a 51% majority stake in the venture, and the GIP-led group will own the rest.
Representatives for Aramco, BlackRock, Citigroup, JPMorgan, Mizuho, MUFG and SMBC declined to comment.
GIP joins a growing list of large institutions raising financing to back energy deals. Abu Dhabi National Oil Co. is considering lining up more than $10 billion in debt financing from local and international banks as it moves forward with its roughly $19 billion pursuit of Australian fossil fuel producer Santos Ltd., Bloomberg News reported last week.
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