Aramco in Talks on $2 Bln Loan from Japan

[Marina Schwarz + 1,214]

Everybody seems to be eager to give their money to Aramco ahead of its IPO. And if it flops?

[Kate Turlington + 44]

They want to buy their role in the IPO...

[Carlsbad + 19]

Just two months ago, the Brits approved the securing of a $2-billion loan for Aramco to attract the IPO to London.

[TraderTate + 181]

Reuters now reporting that Hong Kong, London and NYC have all officially been 'shortlisted' for the Aramco IPO ... 

[Rodent + 1,127]

 

20 minutes ago, TraderTate said:

Reuters now reporting that Hong Kong, London and NYC have all officially been 'shortlisted' for the Aramco IPO ... 

which means that Toronto, Tokyo, and Singapore are effectively out of the running.

[LAOIL + 33]

I understand that the loans are a way to leverage the Aramco balance sheet ahead of the IPO because after the IPO it won't be able to benefit from cheap funds as 'sovereign borrower' because it won't be state-owned anymore.

[Rodent + 1,127]

Right, so the fees would be substantially higher. Borrowing now at lower rates is smarter than borrowing later at higher fees.