Riyadh-Mubasher: Saudi Aramco has signed a $10 billion loan with 27 financial institutions, as part of its strategy to maintain financial flexibility.

The loan will replace an existing $4 billion facility due to mature later this year, the company said.

The facility is denominated in both US dollars and Saudi riyals, with the dollar portion totalling $7 billion. This includes a $6 billion five-year piece with an option to be extended by a year on two occasions and an interest payment rate of 12 basis points (bps).

The remainder consists of a $1 billion 364-day facility paying 10 bps, which is renewable annually.

Among the banks participating in the financing were Bank of China, Bank of Tokyo-Mitsubishi, Citigroup, Deutsche Bank, HSBC, JP Morgan, Standard Chartered and Sumitomo Mitsui Banking Corporation.

Eight Saudi banks also participated in the local currency facility, including Alinma Bank, National Commercial Bank and Riyad Bank.