The new borrowing comprises three tranches an export credit agency facility, an ECA-covered portion and an uncovered commercial piece of around $3.08 billion.
Malaysia’s Refinery and Petrochemical Integrated Development (RAPID) project, a partnership between Aramco and Petronas, is seeking commitments from banks for a $9.7 billion, 15-year loan, reported Reuters.
Banks have already responded to an initial request for proposals and are required to respond by the end of this week with revised proposals.
The uncovered commercial tranche will carry different interest margins tied to completion of the project. The pre-completion period is expected to be two years, during which Petronas and Aramco will provide guarantees, and the all-in pricing is likely to be around 80 basis points over the London Interbank Offered Rate.
Aramco will supply at least 50 per cent of the crude oil for the project.