Chinese, Japanese and some American Banks to Advance $10bn to Aramco

· Loan agreement: Saudi Aramco is nearing an agreement with international banks for a $10 billion revolving credit facility to strengthen its financial position amid regional instability.

· Participating banks: The lenders are expected to include Bank of China, Citigroup, HSBC, Industrial & Commercial Bank of China, JPMorgan Chase and Mitsubishi UFJ Financial Group.

· Loan pricing: The facility is expected to be priced at 60 basis points above the Secured Overnight Financing Rate (SOFR).

· Security concerns: The Iran war and attacks by Yemen’s Houthi militants on Aramco’s infrastructure, including its headquarters, an oil field, a refinery and the Yanbu port, have increased risks to the company’s operations and crude exports.

· Oil market impact: Aramco has benefited from higher oil prices and the recovery of oil production and exports following an initial decline during the conflict.

· Regional financing trend: Gulf energy companies are increasingly accessing debt markets to secure large-scale funding.

· Other recent deals: QatarEnergy raised a $3 billion loan in October, largely from Chinese banks, while Saudi Energy Co. secured 15.8 billion riyals (about $4.1 billion) in Shariah-compliant financing in July.

· Previous credit facility: Aramco signed its previous revolving credit facility in 2024, comprising a $7 billion tranche arranged by US, European and Asian lenders and a $3 billion Murabaha facility funded by regional banks.

[ABS News Service/29.10.2026]

Saudi Arabian state-backed oil company Aramco is nearing agreement with international banks on a $10 billion loan that would bolster its finances as conflicts in the Middle East threaten crude exports.

The revolving credit facility that is set to be signed in the coming weeks will be provided by banks including Bank of China Ltd., Citigroup Inc., HSBC Holdings Plc, Industrial & Commercial Bank of China Ltd., JPMorgan Chase & Co. and Mitsubishi UFJ Financial Group, according to people with knowledge of the matter. 

Saudi Aramco has benefited from a surge in oil prices during the Iran war and as it revived exports and production from a decline during the initial days of the conflict. But the company, the backbone of the Saudi economy, has faced attacks on its infrastructure in recent weeks, with Yemen’s Houthi militants targeting its headquarters, a major oil field, at least one refinery and the key port on Yanbu on the Red Sea.

The new facility is set to be priced at 60 basis points over the Secured Overnight Financing Rate, said the people, who asked not to be identified discussing a confidential process.

Spokespeople for Citi, HSBC, JPMorgan, Mitsubishi UFJ Financial Group, Standard Chartered and Aramco declined to comment. A representative of Bank of China wasn’t immediately available for comment. A spokesperson for Industrial & Commercial Bank didn’t immediately respond to a request for comment.

Gulf energy companies have been looking to tap debt markets for large-scale financing. QatarEnergy raised a $3 billion loan this month largely from a roster of Chinese banks. Saudi Energy Co. also raised a 15.8 billion riyal ($4.1 billion) Shariah-compliant murabaha financing in July, with a group of seven Gulf banks providing the facility.

Aramco signed its previous revolving credit facility in 2024. The facility consisted of two tranches, one for $7 billion arranged by US, European and Asian lenders, and a second tranche for $3 billion, a murabaha facility, that was funded by regional banks.