Saudi Aramco recently closed the financing transaction on its oil pipeline network (“Project Pearl”). The pipeline network, which includes all of Saudi Aramco’s existing and future stabilized crude pipelines in the Kingdom of Saudi Arabia, connects its oilfields to downstream networks. The pipeline network transports 100% of Saudi Aramco’s crude oil produced in the Kingdom under its Concession Agreement. As part of the transaction, Saudi Aramco will lease the usage rights in its stabilized crude oil pipelines network to the Project Company, and the project company will grant back to Saudi Aramco the exclusive right to use, transport through, operate and maintain the pipeline network during the 25-year period in exchange for a quarterly, volume-based tariff, payable by Saudi Aramco. Saudi Aramco will hold a 51% majority stake in the Project Company and sell a 49% stake to investors led by EIG.
Clients: Hassana Investment Company
Enterprise Value: USD 12.4bn
Tribe Role: Debt advisor to bidder and consortium member
Financial Close: April 2021
Tribe acted as debt advisor to Hassana in respect of their bid to Saudi Aramco and subsequently in respect of their participation in the consortium formed by EIG.
Tribe’s mandate included:
- Detailed review of the initial stapled financing package provided by Saudi Aramco from a commercial and financial perspective;
- Assessment of the suitability of various other debt market and funding instruments applicable;
- Identification of financing risks and mitigations from the Investor’s perspective;
- Review of the hedging structure proposed and recommendations;
- Review and commentary on refinancing risks and possibilities;
- Review and benchmarking of the proposed bond market refinancing assumptions;
- Review and commentary on the financial model with sensitivity analysis;
- Review and commentary on the full form financing documentation; and
- Inputs to the Transaction Documents from a commercial and financial perspective.