Saudi Aramco is reportedly nearing a major financing deal with international banks as uncertainty continues across the Middle East. The Saudi state-owned oil giant is seeking a revolving credit facility worth approximately $10 billion.
The proposed facility could strengthen Aramco’s financial flexibility amid risks to oil exports, military tensions and an uncertain economic outlook. According to reports, negotiations with major international lenders have reached their final stages.
The agreement could be signed in the coming weeks, although the final terms remain unconfirmed.
How Would Saudi Aramco’s $10 Billion Loan Work?
The proposed financing would allow Saudi Aramco to access funds up to an agreed limit whenever necessary. Unlike a conventional loan disbursed in full, a revolving credit facility offers greater flexibility.
Aramco could withdraw funds as required and borrow again after repayment, subject to the agreement’s conditions. Consequently, the facility could help the company manage changing financial requirements without immediately drawing the entire amount.
The proposed arrangement reportedly involves banks from the United States, Britain, China and Japan. Sources familiar with the negotiations indicated that discussions had reached an advanced stage.
Which Global Banks Could Participate?
Several major international lenders are reportedly expected to participate in the proposed financing arrangement.
These include:
- United States: JPMorgan Chase and Citigroup
- United Kingdom: HSBC
- China: Bank of China and Industrial and Commercial Bank of China
- Japan: Mitsubishi UFJ Financial Group
The participation of lenders from different financial markets highlights continued international interest in providing credit facilities to Aramco despite regional tensions.
The proposed interest rate could stand 60 basis points above the Secured Overnight Financing Rate (SOFR). This would mean a margin of 0.60 percentage points above the relevant benchmark, excluding other potential charges.
However, the final borrowing cost will depend on the agreed terms and applicable conditions.
Why Does Aramco Need Additional Financial Flexibility?
Aramco’s financing plans come as military tensions and export risks create uncertainty for regional energy businesses. Disruptions to shipping routes and threats to energy infrastructure have complicated the operating environment.
Meanwhile, higher crude oil prices could support the company’s revenue. Nevertheless, elevated oil prices do not eliminate risks associated with export interruptions, transportation costs or operational disruptions.
A revolving credit facility could therefore provide Aramco with additional financial flexibility. It would allow the company to access capital when necessary while managing its broader financial commitments.
The proposed loan also reflects the importance of funding arrangements for energy companies navigating unpredictable market conditions.
Aramco’s Previous Credit Facility and Gulf Financing Trends
Saudi Aramco arranged a $10 billion revolving credit facility in 2024, according to the reported information. International banks provided $7 billion, while regional lenders supplied another $3 billion through Islamic murabaha financing.
Murabaha is an Islamic financing structure involving the sale of an asset at an agreed markup. It differs from a conventional interest-bearing loan.
It remains unclear whether the proposed facility would replace, renew or supplement the existing arrangement. Therefore, the proposed $10 billion should not automatically be treated as an equivalent increase in Aramco’s outstanding debt.
A revolving facility allows borrowers to draw funds according to their needs, meaning the full amount does not necessarily become debt immediately.
Other Gulf companies have also secured financing amid regional uncertainty. QatarEnergy reportedly obtained a $3 billion loan this month, with substantial participation from Chinese banks.
Meanwhile, Saudi Electricity Company arranged Islamic murabaha financing worth 15.8 billion riyals, approximately $4.1 billion, in July. Seven Gulf banks participated in that arrangement.
These transactions highlight how major regional companies are using different financing channels to support their financial requirements.
When Could Saudi Aramco Finalise the Agreement?
The proposed $10 billion credit facility could be signed in the coming weeks, according to the report. However, Aramco and several participating banks reportedly declined to comment.
An immediate response was also unavailable from the Chinese lenders. Consequently, the financing amount, interest margin and other conditions remain subject to confirmation.
For now, the proposed arrangement signals Aramco’s efforts to maintain financial flexibility during a period of regional uncertainty. Its final terms and actual utilisation will determine the facility’s implications for the company’s finances.
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