(Adds Aramco's declined to comment)
DUBAI, June 29 (Reuters) - Saudi Aramco has
invited banks to pitch for an advisory role to help finance the
sale of a significant minority stake in its gas pipelines, the
oil giant's second major midstream deal after a $12.4 billion
deal for oil pipelines, three sources said.
Aramco has already hired Morgan Stanley as an M&A
advisor and the financing advisory role is up for grabs among
banks, two of the sources said.
The gas pipeline stake sale will be a "copy paste" of the
oil pipeline deal, one of the sources said.
Aramco has used a lease and lease-back agreement to sell a
49% stake of newly formed Aramco Oil Pipelines Co to the buyer
and rights to 25 years of tariff payments for oil carried on its
The pipeline deal was backed by nearly $11 billion in debt
underwritten by eight banks and subsequently syndicated to an
additional 10 banks, two sources told Reuters earlier.
Japanese lender MUFG had advised on the financing
for the oil pipeline assets and was in a strong position for the
new role though Aramco has not made any decision yet, the two
Aramco, Morgan Stanley and MUFG declined to comment.
Aramco's sale of a minority stake in its oil pipelines for
$12.4 billion to a consortium led by EIG Global Energy Partners
was its largest deal since a record $29.4 billion initial public
offering in late 2019. The deal closed on June 20.
The financing for that deal is expected to be taken out by
bonds across two or three deals, with the first expected in the
first quarter of 2022. The gas pipelines deal financing is also
expected to be taken out with bonds, one of the sources said.
The structure follows similar deals by Abu Dhabi National
Oil Co (ADNOC), which has raised billions of dollars through
sale-and-leaseback deals of its oil and gas pipeline assets.
Saudi Arabia is the world's sixth largest gas market,
according to Aramco, whose Master Gas System (MGS) derives value
from its range of gas deposits and helps deliver it to
(Reporting by Saeed Azhar, Hadeel Al Sayegh and Yousef Saba;
editing by David Evans)