Last updated: 30 March, 2015

Saudi Aramco signs $10 billion credit deal

Saudi Aramco has signed a loan deal worth $10 billion (9.2 billion euros) with 27 regional and international banks to maintain financial flexibility, the energy giant said on Monday.

The state-owned firm said the first loan is worth $7 billion in US dollars while the second is a $3-billion Islamic loan in Saudi riyals in a revolving credit agreement.

This means the cash will only be taken up when the company needs it.

Of the two loans, $2 billion matures after one year while the remaining $8 billion has a five-year maturity, Aramco said.

The deal replaces an existing $4-billion loan due to mature later this year.

Aramco is the world’s largest oil company in terms of crude production and exports.

The company said the facility is at favourable market prices, reflecting Aramco’s creditworthiness.