In March 2018, the duo borrowed $8 billion from a large consortium of international banks for a refinery and petrochemical joint venture in the Southern Malaysian state of Johor.
Saudi Arabia’s Aramco and Malaysia’s Petronas have approached banks to replace a short-term $8 billion loan raised in March for a joint venture with long-term financing of approximately the same size, reported Reuters.
The firms are now in preliminary discussions for a self-arranged loan with a maturity of more than 10 years which would replace the existing bridge borrowing.
A group of 19 banks that participated in the bridge loan include Asian lenders and BNP Paribas, HSBC as well as JPMorgan and Standard Chartered.
Additionally, Citibank, First Abu Dhabi Bank as well as ING Bank are also part of the banks participating in the bridge loan.
The Refinery and Petrochemical Integrated Development (RAPID) project is a $27 billion complex located between the Malacca Strait and the South China Sea.
Refinery operations are set to begin in 2019, with petrochemical operations to follow between six to 12 months afterwards. The partnership will see Aramco supplying 50 per cent of the refinery’s crude oil with an option of increasing it to 70 per cent.