Saudi Aramco picks HSBC, Japan’s SMBC for $10bln loan – sources – ZAWYA

Saudi Aramco picks HSBC, Japan’s SMBC for $10bln loan – sources – ZAWYA

The financing would help the company to back its acquisition of a 70% stake in Saudi Basic Industries Corp (SABIC) from Saudi Arabia's Public Investment Fund, a deal worth almost $70 billion, sources told Reuters last week.. The two banks "are coordinating the loan by putting down large amounts," said one of the sources, who spoke anonymously as the discussions are private.. While the planned loan would most likely back the SABIC acquisition, one of the sources said Aramco needed cash for other purposes, including dividend payments.. Aramco sold a large part of its shares to Saudi retail investors, with Saudi banks facilitating loans to back their purchases..