28/07/2009
LONDON, July 28 (Reuters) - State oil company Saudi Aramco and French oil major Total <TOTF.PA> have asked lenders for proposals to finance a $12.8 billion refinery at Jubail in Saudi Arabia, banking sources close to the deal said.
Calyon is acting as financial advisor to the project, which envisages a debt to equity ratio of 65:35, one of the sources said. The financing is expected to total $8 billion, which will be the largest Gulf project financing in 2009.
The financing structure will depend on final terms and market interest but is expected to include an uncovered 16-year bank tranche worth over $1 billion, and a Saudi tranche for around the same amount.
Further funds will be provided as direct loans from export credit agencies and guarantees of over $3 billion from JBIC, NEXI, KEXIM, KEIC and SACE. CESCE and COFACE may also be involved, depending on eligible procurement, one of the bankers said.
There will also be a bond, and funds will come from Saudi government-backed Public Investment Fund (PIF) and Saudi Industrial Development Fund (SIDF), the sources said.
With the presence of Saudi Aramco, a significant amount is expected to be provided by Saudi institutions.
The deal is expected to be provided on a club basis by relationship banks, with no syndication necessary. Credit approved proposals are due on Aug. 31.
The 400,000 barrels per day plant is scheduled to be fully operational by the second half of 2013.
In the fourth quarter of 2010, 25 percent of the joint venture will be offered to the Saudi public, leaving both Aramco and Total with an equal 37.5 percent share in the plant. (Reporting by Christopher Mangham, editing by Will Waterman)
