Saudi Aramco officials began early talks with banks about a potential debt financing of up to $70 billion to back its acquisition of a majority stake in Saudi petrochemical firm Sabic, Reuters reports, citing banking sources.
JPMorgan and Morgan Stanley were picked to advise on Saudi Aramco’s plan in July.
Aramco is looking at the 70% strategic stake in Sabic which is currently owned by the Saudi Public Investment Fund (PIF).
Bankers cited by Reuters say a potential financing of US$50-70bn is “a strong possibility.”
One banker told Reuters, ““This is the big one, it could be the largest Middle East deal ever – the deal of the decade in terms of quantum. We are very interested in it and we are actively pitching for it.”