Investors in the Aramco pipeline plan to issue bonds worth $ 4.5 billion

A group of investors in Saudi Aramco’s pipelines is preparing to issue billions of dollars in bonds as soon as this week, according to Bloomberg, citing people familiar with the matter.

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 investments in worksite.

China’s Silk Road fund and Abu Dhabi sovereign wealth fund Mubadala Investment Company are part of the consortium, which paid $ 12.4 billion for a 49% stake. in an Aramco subsidiary that has lease rights for oil pipelines. The deal was concluded in June.

Aramco Oil Pipelines holds the rights for 25 years of tariff payments for flows through the state energy giant’s network.

The largest oil company in the world 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 multibillion-dollar Jafurah natural gas field, expand its oil production capacity to 13 million barrels per day and invest in hydrogen production.

It is also looking to sell a stake in its pipelines. Brookfield Asset Management Inc and the Italian energy infrastructure operator Snam SpA were among the companies that submitted bids for the first round.

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