DUBAI, July 16 (Reuters) – BlackRock-led investors in Saudi Aramco’s gas pipelines network have hired banks to arrange investor meetings ahead of a potential sale of Aramco pipelines bond. A bank document released on Tuesday outlines their plans to refinance a loan supporting their stake purchase.
The investors had in 2021 taken a 49% stake in Aramco Gas Pipelines Co in a $15.5 billion lease-and-leaseback agreement. #AramcoPipelinesBond
They are now issuing amortising bonds to continue refinancing the $13.4 billion bridge loan that backed the deal.
Greensaif Pipelines Bidco, owned indirectly by BlackRock and Hassana Investment Co, has hired JPMorgan and Standard Chartered for investor meetings this Tuesday. These meetings are intended to pave the way for potential bond sales discussions.
Following market conditions, the arranging bank’s document indicates the sale of 12- and 18-year U.S. dollar-denominated amortising bonds. These tranches have weighted average lives of 10 and 14.5 years, respectively. #AramcoPipelinesBond
In February last year, Greensaif raised $4.5 billion by selling amortising bonds.
BlackRock and its affiliates own 77.2% of Greensaif, while Hassana, Saudi Arabia’s investment arm, owns the remaining stake.
In 2021, Aramco entered into a lease-and-leaseback deal, selling a 49% stake in its oil pipelines to EIG Global Energy Partners for $12.4 billion. This deal enabled Aramco to maintain operational control of the pipelines.
BlackRock-led investors in Saudi Aramco’s gas pipelines network have hired banks for investor meetings before potentially selling Aramco pipelines bond.
