Saudi Aramco Seeks $10 Billion Loan From International Banks Amid Middle East Tensions

Saudi Aramco, the state-backed oil giant of Saudi Arabia, is reportedly close to securing a $10 billion credit facility from a group of international banks as it seeks to strengthen its financial flexibility amid growing uncertainty in the Middle East.

According to a Bloomberg report published on October 26, 2026, the proposed financing is expected to be finalised in the coming weeks. The arrangement would give Aramco access to additional funds as needed, providing a financial cushion while the company navigates risks to its oil exports and energy infrastructure.

The proposed credit facility is expected to involve several major international financial institutions, including JPMorgan Chase, Citigroup, HSBC, Bank of China, Industrial and Commercial Bank of China, and Japan’s Mitsubishi UFJ Financial Group.

Sources familiar with the negotiations said the facility could be priced at 60 basis points above the Secured Overnight Financing Rate (SOFR), a benchmark used in US dollar lending. This represents a margin of 0.60 percentage points above the applicable benchmark rate.

However, the final terms remain subject to the outcome of negotiations, and Aramco has not publicly confirmed that the agreement has been completed.

The proposed financing comes at a time when conflict across the Middle East is creating uncertainty for energy companies operating in the region. Although Aramco has benefited from higher oil prices during the conflict with Iran, risks to oil production facilities, export infrastructure and shipping routes have added pressure to the company’s operating environment.

The proposed credit facility would provide Aramco with additional financial flexibility, allowing it to access funds when necessary rather than relying entirely on its regular operating cash flow.

A revolving credit facility also differs from a conventional loan paid out in full at once. It allows a company to borrow within an agreed limit, repay the amount used and access the funds again under the facility’s terms. Therefore, the proposed $10 billion arrangement does not necessarily mean Aramco will immediately borrow the entire amount.

The proposed financing would follow an earlier $10 billion revolving credit facility arranged by Aramco in 2024. That arrangement included a $7 billion facility organised by international lenders and a separate $3 billion Islamic financing facility provided by regional banks.

It remains unclear whether the new arrangement would replace the existing facility or provide additional borrowing capacity.

Aramco’s reported move comes amid broader borrowing activity among major energy companies in the Gulf region. QatarEnergy reportedly secured a $3 billion loan in October 2026, with significant participation from Chinese banks. Meanwhile, Saudi Electricity Company obtained financing worth 15.8 billion Saudi riyals in July.

These transactions highlight how major energy businesses are using international and regional financial markets to secure funding and maintain flexibility amid changing economic and geopolitical conditions.

Aramco occupies a central position in Saudi Arabia’s economy and is one of the most influential companies in the global oil industry. Its financial decisions can therefore attract attention from investors, lenders and energy market participants.

The proposed credit facility would give the company another source of liquidity during a period of uncertainty. However, the arrangement alone does not establish that Aramco is experiencing financial distress. Companies can maintain credit facilities as a precautionary measure, even when they have substantial revenues and assets.

For now, attention remains on the negotiations and whether the proposed agreement will be formally signed in the coming weeks.

ScoopHub will continue to monitor developments in the global energy industry and their implications for oil markets.