Investors led by BlackRock’s Global Infrastructure Partners are securing up to $10.3 billion in financing for Aramco’s Jafurah infrastructure deal. Banks like JPMorgan and Sumitomo Mitsui are involved, with a newly formed subsidiary leasing gas processing facilities back to Aramco for 20 years.

Aramco will retain a 51% stake in the subsidiary, with the investor group holding the remaining 49%. The company may also raise $3-4 billion from Islamic bonds, aligning with Saudi Arabia’s energy strategy to boost gas output by 60% by 2030.

The GIP consortium is investing $1.8 billion into the deal, while the debt financing will have a split between a seven-year tenor and a 19-year tenor. Chinese banks and institutions like Goldman Sachs, Citi, Mizuho, and MUFG are interested in participating in the financing.

The structure of the deal mirrors previous agreements Aramco made for its oil and gas pipeline networks. The Jafurah field, with an estimated 229 trillion standard cubic feet of gas, is crucial for Aramco’s plan to increase gas output significantly in the coming years.

Read more at Yahoo Finance: BlackRock-led group in talks to raise around $10.3 billion for Aramco deal, sources say