Saudi Aramco this year extended the maturity of two revolving credit facilities it took in 2015, meaning those loans worth a total of $8 billion will be available through March 2022, a bond prospectus showed.
Aramco said on Monday it plans to issue multi-tranche U.S. dollar-denominated bonds, as the world’s largest oil company seeks to raise cash amid weak global oil demand and lower oil prices.
The prospectus showed that in June this year the oil giant amended certain agreements regarding one of the two revolving loans, a $6 billion conventional credit facility, to incorporate a $2 billion “swingline” sub-facility to support the establishment of a U.S. commercial paper programme. No debt had been issued under the programme as of Sept. 30, the prospectus said.
Swingline loans are aimed at supporting a borrower’s short-term cash management needs.
Aramco had an unused balance of $10 billion under its revolving credit facilities as of end-2019, the document said.
As of Sept. 30, Aramco had $135.55 billion in total borrowings, up from $46.82 billion at the end of 2019, the prospectus showed, a jump largely explained by its acquisition of a 70% stake in Saudi Basic Industries Corp (SABIC).
The prospectus also confirmed Aramco took a $10 billion loan in May. The loan matures on May 6, 2021, but Aramco has the option to extend it for a year. As of Sept. 30, the loan had been fully utilised.