Saudi Aramco has asked banks to extend by a year a $10 billion loan it raised last May, two sources familiar with the matter said, suggesting that rebounding crude prices are not pushing the oil giant to reduce debt for the time being.
The sources confirmed a report by Loan Pricing Corporation, a fixed-income news provider owned by Refinitiv.
It is at the banks’ discretion whether to extend the loan, but lenders will likely agree in order to maintain a good relationship with Aramco in the hope of receiving future business, LPC said citing a banker.
One of the sources, who confirmed the report, echoed that, saying: “It’s Aramco. Why not?”
Aramco declined to comment.