Investors in Saudi Aramco's oil pipelines plan to issue billions of dollars in bonds this week, Bloomberg reports.
According to Arab Net, three sources said the consortium, led by Washington-based EIG, could raise at least $4.5 billion.
The sources added that Citigroup and JP Morgan would be among the banks managing the offering. The debt will be used to refinance a $10.5 billion loan obtained to finance the pipeline investment.
The China Silk Road Fund and Abu Dhabi's sovereign wealth fund, Mubadala Investment Co., are part of the consortium, which has paid $12.4 billion for a 49% stake in its Aramco subsidiary. Pipeline lease rights. The deal was completed in June.
The Aramco Oil Pipeline Company has rights to 25 years of tariff payments for flows through the state energy giant's grid.
The world's largest oil company is looking for new ways to raise cash to maintain a $75 billion dividend and complete massive investment plans. Over the next decade, Aramco will develop the multi-billion dollar Jafurah natural gas field, expand its oil production capacity to 13 million barrels per day and invest in hydrogen production.
It is also seeking to sell a stake in its gas pipelines. Brookfield Asset Management Inc and Italian energy infrastructure operator Snam SpA were among the companies that submitted first round bids.
