Saudi Aramco, Petronas to raise $8 bln loan: report

Saudi Aramco and Malaysia’s Petroliam Nasional Bhd (Petronas) are close to raising an $8 billion loan to partly finance the construction of a planned refinery and a petrochemical complex in the Southeast Asian nation, Bloomberg reported, citing sources familiar with the matter.

The two oil giants could sign the loan deal as early as next month, sources said.

BNP Paribas, HSBC Holdings and Bank of Tokyo-Mitsubishi UFJ Ltd. are among the banks that have agreed to provide the financing, they added.

The complex is part of a $27 billion project known as Refinery and Petrochemicals Integrated Development (RAPID) that is due to come on stream in 2019.

Saudi Aramco signed an agreement in February last year to buy a 50 percent stake in the refining and petrochemical project, to boost its downstream business ahead of its planned initial public offering expected later this year.

RAPID project, which was announced in 2011, will include a 300,000 barrel-a-day refinery, which can produce fuels that meet Euro 5 emissions standards, as well as provide feedstock for a connected petrochemical plant, according to Petronas.