Aramco extended $8 billion revolving loans in 2020
Oil giant Saudi Aramco this year extended the maturity of two revolving credit facilities it took in 2015, meaning those loans worth a total of $8 billion will be available through March 2022.
Aramco on Monday said it plans to issue multi-tranche U.S. dollar-denominated bonds, as the world’s largest oil company seeks to raise cash amid weak global oil demand and lower oil prices.
A bond prospectus showed by the company showed that in June this year the Aramco amended certain agreements regarding one of the two revolving loans, a $6 billion conventional credit facility, to incorporate a $2 billion “Swingline” sub-facility to support the establishment of a U.S. commercial paper programme.
The prospectus said no debt had been issued under the programme as of Sept. 30.
Swingline loans are aimed at supporting a borrower’s short-term cash management needs.
Aramco had an unused balance of $10 billion under its revolving credit facilities as of end-2019, the document said.
The prospectus showed that as of Sept. 30, Aramco had $135.55 billion in total borrowings, up from $46.82 billion at the end of 2019, a jump largely explained by its acquisition of a 70% stake in Saudi Basic Industries Corp (SABIC).
Aramco took a $10 billion loan in May that was previously reported by Reuters. The loan matures on May 6, 2021, but Aramco has the option to extend it for a year. As of Sept. 30, the loan had been fully utilized, the prospectus also confirmed.