Reuters quoted two sources as saying that Saudi Aramco has chosen HSBC and Sumitomo Mitsui Banking Corporation to coordinate talks with other banks for a nearly $ 10 billion loan that the oil giant plans to collect.

One of the sources said that the two banks "are coordinating the loan by providing huge sums."

And last week, sources told Reuters that the massive financing would help the company support its acquisition of a 70% stake in the Saudi Basic Industries Corporation (SABIC) from the Public Investment Fund, a deal worth nearly seventy billion dollars.

Although the planned loan would likely support the acquisition of SABIC, one source told Reuters that Aramco needed cash for other purposes including paying dividends.

Aramco paid out $ 73.2 billion in 2019, and plans to announce $ 75 billion in cash in 2020.

Aramco did not comment on the banks ’choice, but said it was continuing to review its financial options“ within the normal course of its business, while maintaining prudently its original budget and robustness. ”

Historic turmoil
 Aramco is the world's largest and most profitable oil producer, but fundraising plans coincide with a historic turmoil in the global oil market.

Oil prices fell again today, and Brent recorded its lowest level since 1999 in light of the oversupply due to the outbreak of the Corona virus, which destroyed the demand for fuel.

Saudi Arabia owns more than 98% of Aramco, and last month it said it plans to cut capital spending due to the outbreak of the Corona virus, after it posted a 21% decline in net profit last year.

Aramco shares are trading at 29.4 riyals today, less than the initial public offering price of 32 riyals late last year, and the company initially raised $ 25.6 billion, recording the largest offering in the world.

Aramco shares have fallen 2.7% since Monday, when US West Texas crude futures fell below zero for the first time ever.

In trading today, "SABIC" led the downward trend of the Saudi Stock Exchange, losing 2.5%, while the main Saudi index fell 0.4%.

Aramco sold a large portion of its shares to individual Saudi investors, and Saudi banks facilitated loans to support individuals' purchase of shares, while many investors in the world abstained from buying as a result of several concerns, including governance and the environment.