Petronas, Saudi Aramco seek US$7.5 bln loan for Johor Rapid plant

03-Oct-16

Petronas and the Saudi Arabian Oil Company Saudi Aramco are negotiating for a US$7.5 bln (RM30 bln) syndicated loan to finance a proposed refinery and petrochemical complex in Johor.
The Straits Times reported bankers as saying the 50-50 joint venture between the two international oil giants will be a straightforward loan ahead of a larger bond issue later to finance the Refinery and Petrochemical Integrated Development Project (Rapid). The bridging loan is being guaranteed individually by Petronas and (Saudi) Aramco, and once the project is completed, a bond will be issued by the joint-venture concern,” an unnamed Malaysian bank chief executive was quoted.
Petronas declined to comment on the project’s fund raising, but told The Straits Times that it has “attracted potential strategic and technology partners to the Rapid project and continues to evaluate partnership and funding options”.