JAKARTA. Saudi Arabia's largest oil producer Saudi Aramco is considering obtaining a US$10 billion bank loan.
The loan will be used to acquire a 70% stake in petrochemical firm Saudi Basic Industries Corp (SABIC) following a US$69.1 billion deal that established Saudi Aramco as SABIC's controlling shareholder late last year.
Saudi Aramco is said to have had discussions with HSBC, JPMorgan, and a bank from a gulf country. "The financing would be for the SABIC deal, but the borrower is Aramco," a source familiar with the matter told Reuters.
In response to the information, Saudi Aramco said its management is considering several financing options for the acquisition. (KR/MS)