BlackRock-led group is said to secure $10B financing for Aramco gas deal

[Saudi Arabia targets oil and gas investments. Chemical pipeline networks and infrastructure in Saudi Arabia.]
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A consortium led by BlackRock’s (NYSE:BLK [https://seekingalpha.com/symbol/BLK]) Global Infrastructure Partners has lined up about $10 billion in loans to fund its investment in Saudi Aramco’s (ARMCO [https://seekingalpha.com/symbol/ARMCO]) Jafurah gas project, Bloomberg News reported Wednesday, citing people familiar with the matter.

The package includes a seven-year loan, which could later be refinanced through bonds, and a 19-year facility. Major Japanese and U.S. banks are among the arrangers. The funding will support GIP’s $11 billion agreement to lease midstream assets from the Jafurah development and lease them back to Aramco for 20 years.

The Jafurah field, a $100 billion initiative, is key to supplying Saudi power plants and boosting exports. A new entity, Jafurah Midstream Gas, will oversee the infrastructure, with Aramco (ARMCO [https://seekingalpha.com/symbol/ARMCO]) holding 51% and the GIP-led group owning the remainder.

The deal underscores the growing role of institutional investors in energy infrastructure. Abu Dhabi’s national oil company is also exploring more than $10 billion in financing for its $19 billion bid for Australian producer Santos, Bloomberg News reported.

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